One of my favorite hobbies is strategy games⁠. Rather than enjoying action-oriented video games, I usually go for simulations that are more like glorified spreadsheets, and occasional board games. The games I like invariably have economic components. Sometimes these work well, and sometimes they don’t. And when they do fail, it’s interesting to think about why. This week’s Short Stack is about what gaming can teach us about economics, and vice versa. Games can teach you the perils of too-high working capital: One thing a lot of games do well is simulating the implicit costs of high working capital. The concept sounds ... (full story)