Salt Seller

Commodity Pricing

$150 / seat

Simulation Overview

Understanding cost structure and competitive dynamics in a basic commodity market is a crucial prerequisite for analyzing more complex markets. This multiplayer synchronous simulation gives participants the opportunity to set prices for a commodity in an imperfectly competitive market. The simulation is based on the MIT Sloan case study Ventures in Salt: Compass Minerals International.

The Story

In this simulation, learners play the role of CEO of a salt producer selling salt to towns and municipalities for de-icing roads. The participants then choose selling prices, and need to balance how their competitors and customers will respond to their pricing decisions. The simulation lets learners experiment with different profit-maximizing strategies, experiencing interactively the challenges of pricing in a commodity market with variable demand.

Learning Focus

  • Experience the challenges of pricing in a commodity market with variable demand
  • Understand the dynamics of pricing

Topics Covered

  • Commodity Markets
  • Variable Demand
  • Dynamics of Pricing

This simulation comes with a Teaching Guidebook for the facilitator along with 1:1 training sessions, free trials, videos and more.

This simulation is by John Sterman, MIT Sloan School of Management, and Forio

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