The Impact of an Artificial Market Leader on Simulation Competitor’s Strategies

This study continues a recent stream of research pursuing the concept of simulation participation validity predicated on the extent to which participants respond to a simulation environment, which is manipulated in meaningful ways. The present study investigates the impact of an artificial market-leading competitor on other competitors’ strategies. The investigation is carried out in an experimental setting in which the responsiveness of the market to different strategy variables is also controlled. The findings provide substantial support that simulation players are sensitive to the presence of an artificial industry-leading competitor and, correspondingly, to the environment created by the simulation administrator.