(20f) Interactive Simulation for Teaching Engineering Economics

A game simulating realistic economic decision-making was devised and integrated into a Rowan University course on engineering economics in 2001 and 2002. The activity was extremely well received and the NSF provided a CCLI grant for development of software that automates the game, making it suitable for widespread dissemination.

The game itself challenges students to not only learn engineering economic principles such as present worth, but also to use them to make realistic economic decisions in a competitive setting. Each student starts with $10,000, 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 item in an auction. Additional investment opportunities are introduced weekly throughout the semester. The required analysis grows in complexity as the students' knowledge base increases. The game is interactive; for example the owner of a factory must negotiate the price of raw materials he/she needs with the owner of a mine.

The software is written using standard HTML and Active Server Pages with a Microsoft Access Database. Students use the software to manage their company, taking such actions as placing bids in an auction, purchasing buildings and ships, setting production rates for mines and factories, and borrowing money from a bank. Students can also use the software to view reports, such as lists of their assets, their current bank balance, etc.