On a resurgence of management simulations and games

The past few years have seen a significant resurgence of interest in ‘management games’ and ‘management flight simulators’, one particularly active source of such work being the system dynamics community. After proposing a distinction between games and simulations, this paper provides some background to these developments by briefly describing the historical roots of the field and the fundamental ideas of the system dynamics community, which are now giving rise to ‘microworlds’. The training advantages of management simulations and games are then discussed. The paper closes with a note on the research and findings of the system dynamics field and by offering some words of warning on the perils of simulation and game use. Two scenarios for how the use of simulations and games as management education devices might develop in the future are proposed. An Appendix describes five examples of very different types of management simulations and games.

Bargaining over strategies of non-cooperative games

We propose a bargaining process supergame over the strategies to play in a non-cooperative game. The agreement reached by players at the end of the bargaining process is the strategy profile that they will play in the original non-cooperative game. We analyze the subgame perfect equilibria of this supergame, and its implications on the original game. We discuss existence, uniqueness, and efficiency of the agreement reachable through this bargaining process. We illustrate the consequences of applying such a process to several common two-player non-cooperative games: the Prisoner’s Dilemma, the Hawk-Dove Game, the Trust Game, and the Ultimatum Game. In each of them, the proposed bargaining process gives rise to Pareto-efficient agreements that are typically different from the Nash equilibrium of the original games.