|
How Does Brightline Work?
Brightline II was written in Java and has
been tested on various Wintel machines. Brightline II will not run
on a Mac. For
Windows users, the Java Runtime Version
1.3 is required. Unsupported users may run the original
version of Brightline instead.
Once the main Brightline window comes up
you can then Run, Pause, Step-cycle or Reset the simulation using
the buttons at the bottom of the screen.
The five large colored ovals are the
Company agents. The five boxes above each oval represent the
Shareholders of that Company, and the small black boxes represent
Customers, with the Government agent represented by the large
horizontal oval at the top. As the run progresses the five Company
agents compete for Customers by lowering prices - which they can
only do by increasingly externalizing costs.
At some point the externalizing
activities of each Company may exceed 'legal' levels. This is
indicated by the appearance of the Company name in the applet. White
lettering indicates legal levels of externalization, and black
indicates illegal levels.
This concept of externalized costs is the
key behavioral element that Brightline is intended to demonstrate.
In future versions of Brightline we hope to further discriminate
between varying types and degrees of externalization, i. e.
accounting fraud, environmental crime, negative customer health
consequences, excessive impact on government and "capture" of public
goods, insider trading profits, excessive contingent lawyers fees
and unreasonable levels of executive compensation, etc.
Both the Shareholder agents and the
Government agent monitor the externalizing activities of the Company
agents and react accordingly.
Shareholders, looking to maximize their
investment return, will be happiest (green) when their Company's
performance is high. If their market share begins to fall off the
shareholders will turn yellow, indicating a state of
dissatisfaction.
The Government monitors both each
Company's individual externalization level AND the cumulative total
of externalization by all corporate agents. It will become
potentially active (regulatory) and turn red when the cumulative
total reaches a certain level, reflecting an overall negative public
response to industry practices as a whole. Once active the
Government agent will then begin to penalize the most highly
illegally externalizing Companies, and as each Company is fined it
will momentarily flash in indication. Fined Companies are required
to return to legal levels of externalization for a number of cycles
before they can begin again to exceed such limits.
One key additional feature of Brightline
is intended to test and illustrate the effect of active shareholders
interacting with one of the Companies. This effect occurs when three
or more of the 'focus' Company agent's Shareholders become "Active,"
which is indicated by those Shareholders turning red. Only one of
the Companies is seeded with this potential. These Active
Shareholders thereafter will prevent their Company from breaking the
law - from exceeding the Government agent's legal limit for
individual corporate externalization.
The bar charts at the bottom of the
applet window (Brightline II only) indicate both cumulative earnings (adjusted for
present value) and cumulative externalization levels for each
company. Will the presence of Active Shareholders prove out to be a
competitive advantage or disadvantage? This is one of the key
questions which Brightline is intended to reveal and
illustrate.
In the full application version of the
program these numbers may be output to Excel or another spreadsheet
or database application for statistical analysis. Due to certain
built-in randomization factors in the program, intended to insure
data integrity, significant patterns may only be determined through
such analysis; a single run of the program using a given set of
parameters should NOT be considered conclusive. To facilitate such
study the full application version also permits unattended batch
runs, at a much higher speed of execution than is shown
here.
In the full application version
essentially all of the program's runtime variables or parameters can
be set by the user, permitting a wide range of testing and
experimentation of the basic Brightline concepts. In the
applet version users may select from a number of pre-established
parameter sets, using the provided drop-down menu. These sets are
described in full on the 'Customizing
Brightline' page.
Return
to Brightline Applet
|