You are the manager of a car rental company in Florida. For each of the next 12 months you must make pricing and fleet management decision to maximize your profit. You can play the simulation up to three times. You may want to take 2 practice runs to get a feel for the game and use the third run to truly compete in the industry. Use the last play of the simulation to answer the following questions.

There are introductory video tutorials and downloadable PDF once you start. You may want to review the questions below before starting the simulation and use them to start thinking about your strategy. You will learn a lot more if you think about your strategy, and think about what your competitor is doing (Game Theory) than if you just quickly and randomly change prices.

1. What factors caused demand to change? How did knowledge of this help your pricing strategy?
2. How did you manage a surplus and/or shortage of cars?
3. What market structure are you competing in?
4. What would be fixed and variable costs associated with car rental? Which market had the lowest fixed costs? Which market had the lowest average fixed costs? How could you benefit from economies of scale? How does this impact your profitability?
5. How can you determine the elasticity of demand for various customers? How does this affect your pricing decisions?
6. How are the characteristics of Miami and Orlando different?
7. What strategy did you pursue? How did your answers and consideration of the previous questions help inform your strategic choices? What strategy do you think your competitor pursued? [options include managing capacity with price based on what happened in its own business the previous month; Tit-for-Tat strategy; predatory pricing; gradually increasing pricing].
I need both the simulation done and the questions answered.

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Florida Rental Car Simmulation