The competitive advantage of staff expenses C staff (i) is calculated by:
C staff (i ) = Exp(i, p)
Estafft
where:
Exp(i, p ) = Total staff expenses chosen by participant i in period p E staff = Exponential factor The competitive advantage of the IT expenses is calculated in the same way. The IT expenses are added to “Net property and equipment” in the balance sheet. These are depreciated on a five year basis. The total IT expenses from the balance sheet are used to calculate the competitive advantage. In this way, the IT expenses in the current and previous periods contribute to the competitive advantage. For staff expenses, only the current period contributes. The weighting factors Wstaff , WheadqIT , WnetwIT , WmangIT , WtelcIT and exponential factors E staff , E headqIT , E netwIT , E mangIT and E telcIT can be filled out in the setup menu item “Other parameters”, or the menu item “Institution”. The percentage of allocated clients Ptrans ( p, i ) must always be 100%. If we sum this up for all participants: N
Ptot = ∑ Ploan ( p, i ) = 100% j =1
In some cases, the weights W fee , Wstaff , etc. can be chosen such that Ptot differs from 100%. To avoid this problem, a correction is carried out where each percentage of allocated clients Ptrans ( p, i ) is divided by Ptot :
Pcorrection ( p, i ) =
Pcorrection ( p, i ) Ptot
In that case, the sum of corrected percentages is always 100%: N
∑P j =1
correction
( p, i ) = 100%
In the simulation, we always use the corrected percentages. In the decision input screen, (if the instructor has made money transfers available) the participant can fill out “Fee percentage money transfer”. For each financial transaction, the bank receives a fee. In the simulation, each active client carries out one financial transaction at a certain bank. The bank to which an active client is assigned to, is determined by the cutting cake formula, which is explained in detail in this chapter. The total revenues from money transfers is calculated by the formula: