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Industry note: Market simulation for teaching commodity trading skills
Author(s) -
Hill Lowell D.,
Bender Karen L.
Publication year - 1996
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/(sici)1520-6297(199607/08)12:4<403::aid-agr10>3.0.co;2-2
Subject(s) - profit maximization , profit (economics) , commodity , commodity market , marketing , miller , economics , utility maximization , trading strategy , industrial organization , microeconomics , business , financial economics , finance , ecology , mathematical economics , biology
A Grain Market Simulator provided private traders in the Russian grain industry with an opportunity to develop marketing strategies and skills. Players were assigned a role as farmer, country elevator, merchandiser, or miller with appropriate inventories, costs, and capacities. Players were challenged with frequent changes in market information, requiring new strategies for risk management and profit maximization. Lecture/discussion periods were keyed to problems encountered by the market participants as trading became increasingly complex. The record of daily transactions provided information on which to base refinements in the computer program and rules of the game. © 1996 John Wiley & Sons, Inc.