Economy
The virtual economy responds to every decision in real-time. At each simulation tick, all participants production outputs are sold and all markets are cleared.
The demand for all products is determined by the total capital invested by all participants.
The more capital is invested into long-term assets, the larger the GDP and the stronger the economic growth. The prime interest rate and the tax rate can be adjusted during the simulation in order to stimulate or to smoothen economic growth.
Economic growth has an effect both on the aggregate demand and on the market price levels in each of the featured industries.
Competition within Industries
The simulation plays out dynamically. For each of the 245 featured industries, profitability is determined by:
all industry competitors investment activities
the size (capacity) of existing firms
the marketing budget spent
the product life cycle
current supply and pricing levels (threat of market entrants)
your decisions.
