Ingolf Ståhl

This paper is focused on the issue of how one can get Discrete Events Simulation (DES) more used in Business Schools, since this type of simulation allows students to do interesting simulation projects in companies. We list a great number of project topics that we in four countries have given our business students and which they have been able to carry out successfully as part of an introductory course, requiring one month of work. This list of topics can hopefully give also other students ideas for project work. For some of these topics we also bring out some interesting details. 

The paper first discusses the importance of discrete event simulation (DES) in the business school curriculum. It next notes how small Macintosh lap tops have become increasingly popular among business students. We next discuss what DES software is available on the Mac, first directly, then indirectly by running DES software for Windows in some way on the Mac. Noting that there is not much simple DES software on the Mac, but yet a great demand for such software from many business students, we turn to the transfer of one pedagogical software system, aGPSS, from Windows to the Mac. We here first give a brief historic background of aGPSS. Next we discuss some of the problems encountered when transferring aGPSS to the Mac. The paper ends with a brief discussion of some pedagogical aspects of using aGPSS on the Mac in the teaching of basic management science.

The paper presents simulation of two classic duopoly games, those of Cournot and Bertrand. The simulation is done with a very simple Discrete Event Simulation system, aGPSS, developed for economics students. With the Cournot model one can study under which conditions the Cournot solution will be obtained even if the parties lack knowledge about demand and costs. The Bertrand model, with stochastic demand, allows the study of cases when a firm can charge a higher price than the other firm and yet sell because the firm charging a lower price sells more than it has expected. © ECMS Zita Zoltay Paprika, Péter Horák, Kata Váradi,Péter Tamás Zwierczyk, Ágnes Vidovics-Dancs, János Péter Rádics (Editors).

I summarize my experience from having taught simulation to over 7000 students for over 30 years; to undergraduate, graduate and Ph. D. business students, executives and high school students, in five countries. I discuss how my students differed from other simulation students and my general teaching goals. I answer the question of why Discrete Events Simulation is important at a business school. I present the five main types of course modules that I have taught. I finally discuss my choice of DES software, explaining why I have chosen to use a streamlined GUI based version of GPSS, WebGPSS. © 2007 IEEE.

The paper presents a specially constructed Web-based tool, WebGPSS, developed in Sweden, for teaching business students simulation. The tool includes a Java Applet that provides a Graphical Users Interface, by which the student can build a simulation model of a system, such as an inventory system. The model is then run on a remote server, which then sends result graphs and tables over the Web to the student computer. The paper furthermore discusses the experiences made when using this tool in a distance-learning course at the Norwegian School of Economics and Business Administration (NHH) in Bergen, in 2000 – 2002.

We describe in detail a business game, which has been used extensively in education for a decade. Although the business game is smaller than other games, it is fairly realistic as it includes decisions on investments, production, prices, and advertising. Furthermore, the game has dynamic properties, in that decisions and financial states of the firms carry over from one period to the next. There are not many such detailed descriptions of business games, although this is in demand. Such a complete mathematical description lays ground not only for alterations of the game, but also for developments of new games. It can also provide a link to models used in micro-economic theory.

A simulation model is successful if it leads to policy action, i.e., if it is implemented. Studies show that for a model to be implemented, it must have good correspondence with the mental model of the system held by the user of the model. The user must feel confident that the simulation model corresponds to this mental model. An understanding of how the model works is required. Simulation models for implementation must be developed step by step, starting with a simple model, the simulation prototype. After this has been explained to the user, a more detailed model can be developed on the basis of feedback from the user. Software for simulation prototyping is discussed, e.g., with regard to the ease with which models and output can be explained and the speed with which small models can be written.

Can the outcome of bargaining between two rational parties be determined? Although much of the discussion in bargaining literature revolves around this question, no satisfactory answer has been found. A model based on simple assumptions of rational behavior is developed in an attempt to answer this question. There are two versions of the model: A general model for computer use, by which a great number of different bargaining situations can be studied. A special model which relies on a simple analytical procedure. This model can determine a solution for bargaining situations that fulfill certain conditions as regards the bargainers' profits from an agreement. It can be applied to show that very simple assumptions of rational behavior lead to a unique solution for a fairly large group of interesting bargaining situations. The following examples are discussed: How many shares of the purchasing corporation should be paid for each share of the purchased corporation in a merger? How can two corporations reach an agreement on a market-division? How does a corporate income tax or a wage tax affect labor-management negotiations?