The Industry Evolution Management Flight Simulator portrays the growth and competition of firms as an industry evolves. Playing the role of chief executive for one of the firms in the industry, you make key decisions involving pricing, investment and marketing in order to succeed in the marketplace.

This version of the simulator has been customized to portray the salt industry, as described in the Ventures in Salt: Compass Minerals International case. To keep things simple, we abstract from the particulars of Compass and other companies, focusing on price competition between two identical firms. Even though the model has been carefully calibrated and tested, it is not designed to predict the future. Rather, it is used to illustrate competitive dynamics important not only in the salt industry but in other contexts you may face.

So, let's roll. You are the President and CEO of a salt producer similar to Compass Minerals International. You are in the business of producing and selling salt. Your main clients are towns and municipalities that buy salt for deicing roads. To keep things simple, you have only one competitor, whose firm is identical to yours in all aspects (including cost structure and production capacity). The playing field is level: any differences in performance are due to differences in the strategies you and the competitor use. Your job is to maximize your cumulative profit over a period of ten years. Both you and your competitor simultaneously choose the price you offer to customers each year. You will receive feedback on market shares, revenue, profit, costs, etc. Note that US antitrust laws prohibit direct communication or coordination between you and your competitor. You may not discuss pricing with your competitor. You need to select your pricing strategy based on your best judgment about how your competitor and customers may respond.