The Restaurant Game

Abstract

The Restaurant Game is a single-period simulation that provides students with the opportunity to plan and execute a strategy for operating in a competitive environment. The game includes an auction in which players must bid for raw materials. This auction can result in players changing strategies in response to market conditions. After the players have obtained the necessary raw materials, they allocate them to create menus which can be sold to generate profits. The allocation process is actually an application of integer programming, and the instructor can demonstrate how mathematical modeling can lead to optimal solutions.