Interactive simulation for teaching engineering economics

A game that simulates the economic decision-making that occurs in running a company has been developed and integrated, as a semester-long project, into a senior/graduate course on engineering economics. The game challenges students to not only learn engineering economic principles such as present worth, rate of return etc., but also to use them to make realistic economic decisions in a competitive setting. This creates a fun, engaging environment for active learning of the material and provides a framework that illustrates the importance of the material. In the game, each student starts with an identical sum of money, and is presented with a list of investment opportunities. Students apply the principles learned in class to the possible investments and make decisions such as how much to bid on a particular mine or factory in an auction. Additional investment opportunities are introduced weekly throughout the semester, with the required analysis growing in complexity as the students' knowledge base increases. The game is interactive in nature- for example; the owner of a factory must negotiate the price of raw materials he/she needs with the owner of a mine. Student response to the exercise was extremely positive; they found it both enjoyable and beneficial.