A simulation that models the interaction between the availability of a resource or service and the desire for it. Participants make decisions mirroring producers and consumers in a market, attempting to optimize their outcomes based on prevailing prices and anticipated future conditions. For instance, one person might decide how many units of a product to manufacture, while another determines how much they are willing to pay for those units.
Understanding these dynamics is crucial for comprehending market behaviors, resource allocation, and price fluctuations. These interactive experiences offer a hands-on approach to learning about market mechanisms, revealing insights that may not be immediately apparent from theoretical studies. While simplified, they replicate core economic forces, offering a tangible and intuitive understanding of market equilibrium, surpluses, and shortages. Historically, simplified economic models have been used to teach the concepts of market systems.
