Part 1. The Basic CLUG Game
Part 1A. Player’s Instructions
A typical CLUG Scenario consists of a flat, empty plain with a River running from its northern edge towards the southeast corner. A grid of Secondary Roads divides the plain into equal parcels of land, a pair of Primary Roads cross west of the River, and a Terminal is located on the River at the eastern end of the east-west Primary Road. The map indicates these major features.
At the end of Round 5, a new Terminal, a Bridge across the River, and ten additional sections of Primary Road may be added if at least 60 per cent of all players vote approval of the locations recommended by City Council. If the proposed locations are not accepted at that time, their construction will be delayed round by round until an agreement is reached.
A typical CLUG Scenario consists of a flat, empty plain with a River running from its northern edge towards the southeast corner. A grid of Secondary Roads divides the plain into equal parcels of land, a pair of Primary Roads cross west of the River, and a Terminal is located on the River at the eastern end of the east-west Primary Road. The map indicates these major features.
At the end of Round 5, a new Terminal, a Bridge across the River, and ten additional sections of Primary Road may be added if at least 60 per cent of all players vote approval of the locations recommended by City Council. If the proposed locations are not accepted at that time, their construction will be delayed round by round until an agreement is reached.
Basic land uses represented in the game are several varieties of : Residential, Commercial , & Industrial
Residential: Single Family, Duplex, Townhouses, and Apartments
Commercial: Convenience Goods, Specialty Shops, Business Services, and Regional HeadquartersIndustry: Light & Heavy
Roles in CLUG are largely determined by the land-uses built and operated by each team. In the basic game teams begin with $100,000. In the Round 3 game, they begin with some land and buildings already in operation plus funds remaining after two rounds of income and expenses. Teams may build any type of land-use they wish so long as they own the land, it has appropriate municipal services, they can pay for construction, and the intended use does not violate existing land-use regulations. In order to simplify record keeping in the game, only one type of land use may be built on each parcel.
City Council decides which parcels receive Municipal Services and whether they are of low or high capacity. Council sets the property tax rate for each round, may enact reasonable ordinances for land use control, and may perform other characteristic functions of urban governance. The Game Operating Director (G.O.D.) is the final arbiter of the legitimacy of Council actions.
Teams may buy land from the Operator or other teams. The minimum price for unowned land is $1000 payable to the Operator. Prices for land owned by other teams must be negotiated. Table 1 shows the construction cost of each type of building together with its potential income, the number of worker units either housed or employed, and basic operating costs for each type of unit before taxes, depreciation and other expenses.
Table 1 Land Use Characteristic
Residential: Single Family, Duplex, Townhouses, and Apartments
Commercial: Convenience Goods, Specialty Shops, Business Services, and Regional HeadquartersIndustry: Light & Heavy
Roles in CLUG are largely determined by the land-uses built and operated by each team. In the basic game teams begin with $100,000. In the Round 3 game, they begin with some land and buildings already in operation plus funds remaining after two rounds of income and expenses. Teams may build any type of land-use they wish so long as they own the land, it has appropriate municipal services, they can pay for construction, and the intended use does not violate existing land-use regulations. In order to simplify record keeping in the game, only one type of land use may be built on each parcel.
City Council decides which parcels receive Municipal Services and whether they are of low or high capacity. Council sets the property tax rate for each round, may enact reasonable ordinances for land use control, and may perform other characteristic functions of urban governance. The Game Operating Director (G.O.D.) is the final arbiter of the legitimacy of Council actions.
Teams may buy land from the Operator or other teams. The minimum price for unowned land is $1000 payable to the Operator. Prices for land owned by other teams must be negotiated. Table 1 shows the construction cost of each type of building together with its potential income, the number of worker units either housed or employed, and basic operating costs for each type of unit before taxes, depreciation and other expenses.
Table 1 Land Use Characteristic
Properly managed, all land uses can make a modest profit. They can lose money, however, through bad management or poor location.
Teams owning mostly Residences tend to behave like workers and consumers while teams owning mostly Commercial properties think like local businessmen and those owning Industries tend to behave like industrialists.
Specialization among team members can be helpful, however. One member could be responsible for all financial transactions, another could be responsible for negotiations with other teams, and one could be responsible for real estate and construction decisions. Of course one or two members are also needed for membership on the City Council and any related boards or sub-committees Council may create.
The Accounting System consists primarily of rules governing the exchange of play money among teams, and with the Game Operator. Money is used for constructing buildings, meeting payrolls, paying for goods and services, paying taxes, and paying transportation costs. Since the rules are an approximation of the principles of land-use economics, learning to survive in CLUG provides an understanding of those real world principles. Although simpler than reality, the CLUG economy is quite complex since it changes over time and is filled with uncertainty due to the actions of other players as well as the difficulty of considering all the information necessary to make wise land-use decisions. The Game Operator and Accountant keep track of community expenses, taxes owed, and transportation costs.
Less tangible accounts also exist in terms of the reputation individual players and teams develop among themselves, and the way they use their "political power." Some teams develop a reputation for honesty and responsibility, while others become known for their disorganization and lack of integrity. Despite the competition inherent in CLUG, all players belong to the same community and depend upon one another for their mutual well-being. Each team has one vote on decisions regarding the Tax Rate, the provision of Municipal Services, and the outcome of planning recommendations.
The following eight Steps of Play are repeated each round:
1. Land Title Changes: Teams may buy land from each other or the Operator at any time at any agreed upon price, but the title change must be recorded with the Accountant at the beginning of each round to have a legal basis during that round.
Teams owning mostly Residences tend to behave like workers and consumers while teams owning mostly Commercial properties think like local businessmen and those owning Industries tend to behave like industrialists.
Specialization among team members can be helpful, however. One member could be responsible for all financial transactions, another could be responsible for negotiations with other teams, and one could be responsible for real estate and construction decisions. Of course one or two members are also needed for membership on the City Council and any related boards or sub-committees Council may create.
The Accounting System consists primarily of rules governing the exchange of play money among teams, and with the Game Operator. Money is used for constructing buildings, meeting payrolls, paying for goods and services, paying taxes, and paying transportation costs. Since the rules are an approximation of the principles of land-use economics, learning to survive in CLUG provides an understanding of those real world principles. Although simpler than reality, the CLUG economy is quite complex since it changes over time and is filled with uncertainty due to the actions of other players as well as the difficulty of considering all the information necessary to make wise land-use decisions. The Game Operator and Accountant keep track of community expenses, taxes owed, and transportation costs.
Less tangible accounts also exist in terms of the reputation individual players and teams develop among themselves, and the way they use their "political power." Some teams develop a reputation for honesty and responsibility, while others become known for their disorganization and lack of integrity. Despite the competition inherent in CLUG, all players belong to the same community and depend upon one another for their mutual well-being. Each team has one vote on decisions regarding the Tax Rate, the provision of Municipal Services, and the outcome of planning recommendations.
The following eight Steps of Play are repeated each round:
1. Land Title Changes: Teams may buy land from each other or the Operator at any time at any agreed upon price, but the title change must be recorded with the Accountant at the beginning of each round to have a legal basis during that round.
2. Municipal Services: Each parcel to be built upon must be supplied with Municipal Services. City Council must decide at this step if any new parcels are to be provided with low or high levels of municipal services indicated by placing one or two push pins on its location on the playing board. One push pin indicates Low Level services and two push pins indicates High Level Services which are required for Townhouses, Apartments, and Heavy Industry. The City spends $2000 for each new push pin added and is subsequently charged $100 per round for the operating expenses of each existing push pin on the board.
At the beginning of the game the City’s total municipal service capacity is for 30 push pins. If that capacity is exhausted the city must build capacity for an additional 30 pins worth at a cost of $100,000. A bond issue could allow the city to spread this cost over ten rounds. In the Round 3 start version there are 18 pins already in place by the end of Round 2.
3. Construction: Teams may build any legally allowed type of land-use on any parcel they own if they have enough money and it has been provided with adequate Municipal Services. Various shapes of blocks are used to indicate each type of land-use, with a colored chip indicating team ownership. If the Operator considers it a sound investment, he may allow a 50% loan on new construction, repayable at 10% of the total construction cost plus 10% interest on the unpaid balance each round for the next five rounds. A few building types, LI, R1, R2, and R3 can be upgraded to the next higher level by paying the difference in cost between the new level and the existing one. Such an upgrade has the added benefit of changing the round of initial construction to the current round, thereby eliminating the intervening depreciation.
Existing buildings may be demolished for 10% of their initial construction cost.
4. Employment: Commercial and Industrial land uses need workers to earn income. One residential unit supplies one unit of workers. Teams owning land-uses that require workers hire them by mutual agreement with teams owning Residences. All wages are fixed at $5000 per worker unit per round and all contracts are binding until the end of the next round divisible by five. A pair of written work contracts are exchanged on the forms provided with one copy to employee and one to employer.
At the beginning of the game the City’s total municipal service capacity is for 30 push pins. If that capacity is exhausted the city must build capacity for an additional 30 pins worth at a cost of $100,000. A bond issue could allow the city to spread this cost over ten rounds. In the Round 3 start version there are 18 pins already in place by the end of Round 2.
3. Construction: Teams may build any legally allowed type of land-use on any parcel they own if they have enough money and it has been provided with adequate Municipal Services. Various shapes of blocks are used to indicate each type of land-use, with a colored chip indicating team ownership. If the Operator considers it a sound investment, he may allow a 50% loan on new construction, repayable at 10% of the total construction cost plus 10% interest on the unpaid balance each round for the next five rounds. A few building types, LI, R1, R2, and R3 can be upgraded to the next higher level by paying the difference in cost between the new level and the existing one. Such an upgrade has the added benefit of changing the round of initial construction to the current round, thereby eliminating the intervening depreciation.
Existing buildings may be demolished for 10% of their initial construction cost.
4. Employment: Commercial and Industrial land uses need workers to earn income. One residential unit supplies one unit of workers. Teams owning land-uses that require workers hire them by mutual agreement with teams owning Residences. All wages are fixed at $5000 per worker unit per round and all contracts are binding until the end of the next round divisible by five. A pair of written work contracts are exchanged on the forms provided with one copy to employee and one to employer.
5. Shopping: Every residential unit must purchase both Convenience Goods and Specialty Items each round from either the Operator or a local store owner. Both customer and store owner should complete a Shopping Contract to avoid later misunderstandings. Teams shopping with the Operator may change to a local merchant in any round. Store owners set prices far enough below the catalog prices offered by the Operator to attract customers who must pay transportation costs to shop locally. Prices charged by the Operator include delivery costs. All customers of the same commercial district pay the same price, regardless of distance travelled. When setting prices, store owners must plan on future customers as well as competition from other stores as well as those currently in place. Once set, prices may be changed only during rounds divisible by five.
6. Payments:
- Teams owning Industries receive their income from the Game Operator.
- Teams owning Industries or Commercial properties pay $5000 per worker unit to the teams providing those workers.
- Teams owning Residences pay Shopping Costs to the Operator, or to the teams owning the local Convenience Goods and Specialty Shops where they have agreed to shop.
- Teams owning Industries or Commercial properties pay for Business Services to either the Operator or to a local owner.
7. Transportation: Transportation costs are charged for 5 types of trips: Light and Heavy Industries pay for shipments to the terminal and Residences pay for workers going to work and shoppers going to shop at both Convenience Goods and Specialty Goods shops. Although the Operator records these costs and collects them from each team at this step, teams should be aware of how they are computed in order to avoid spending too much for this expense due to poor location decisions. Shopping at Business Services requires no appreciable transportation costs since most of it occurs through mail, phone, or computers.
Table 2. Transport Costs Per Primary Road Segment
Light Industry goods to terminal $1500
Heavy Industry goods to terminal 4000
Journey to work per worker unit 300
Shopping for Convenience Goods 200
Shopping for Specialty Items 100
The number of road segments from origin to destination for each type of trip are tallied with secondary roads counted as two and primary roads counted as one. The sum of this count is multiplied by the transportation cost factor given for each type of trip in Table 2 and entered as the round total for each team in the Transportation Work Sheet.
8. Taxes: The entire community must pay for costs incurred for building and operating Municipal Services, for providing Social Services to each residential unit and for interest on any debts the city may have incurred in previous rounds. The Accountant keeps track of these costs, assesses the value of each team's land and buildings, and computes taxes owed by each team based on the Tax Rate established by City Council during the previous round. Taxes are paid to the Game Director, the current financial status of the community is announced, and the tax rate for the next round is announced.
9. Depreciation: The Operator may choose to add one additional step of play to each round. For details see Section E. Entropy in CLUG.
Part 1B. City Council Agenda
Each Team may elect one member to the City Council who may be replaced at the beginning of any odd numbered round by a majority vote of the members of that team. City Council is in session when all members have been informed of a meeting and more than half its members are present at the announced time. City Council may elect one of its members as chair to serve until replaced or the position is eliminated. The game will not be paused to await decisions by Council. The Game Operating Director is the final authority on the legitimacy of any Council actions or proposed ordinances. Council should try to cover the following agenda:
Tax Rates - Any changes in the tax rate must be given to the Accountant by the end of each round. If no change is indicated, the prior tax rate remains in effect.
Land Use Controls - Council may enact any of a variety of land use controls so long as they are ruled legal by G.O.D.
Planning - Council is responsible for proposing how and where the state provided Bridge, 10 Primary Road segments, and Terminal are to be placed at the end of round 5. Council’s proposal must be approved by 60% of all voters in a public referendum to take effect. If approval fails, a modified plan may be presented at the end of the next round.
Economic Development - Council may seek new investment in the city by inducing an outside agency to establish a Regional Headquarters in the City. A Regional Headquarters is assessed at $80,000, requires one Municipal Service unit, consumes $4,000 worth of Business Services each round, and employs 4 worker units at the fixed City wage rate. Negotiations with the outside company are covered by G. O. D.
The odds of enticing a Regional Headquarters are 10% unless Council increases the odds by offering one or more of the following incentives, each of which increases the odds of “winning” by 10%. The City must pay $2,000 for each attempt, however.
Part 1C. Operator’s Instructions
Equipment Needs:
Timing: Allow 2-3 hours to complete the first two rounds in a single session. Stopping before the end of the second round may leave players intimidated by the complexity of the game and unwilling to play again. Later rounds take about 30 minutes, and may be played sequentially or at daily or weekly intervals.
Options: The game may start at either Round 1 or Round 3. If starting with Round 3, use the scenario and forms provided in Part 2 of this manual including the unique scenario for each team describing its current economic and political situation.
City Council is usually made up of one representative from each team. An interesting variation occurs if, instead, Council is made up of three members each elected from one of three wards defined on the board. Election is then by ward with one vote per residential unit in each ward. This creates a very different political dynamic as well as shifts some of the influence away from large employers and tax payers.
Room Arrangements: Three persons per team at a minimum seems to work best for generating good discussions among payers. More than five or six per team becomes difficult to handle. With ten or less players, they may be seated around a single large table containing the game board and equipment, with the Game Operator and the Accountant at one side.
With more than ten players, separate tables should be provided for each team arranged in a U shape around a central table containing the playing board. The Operator and Accountant should be placed together at the open end of the U layout. In either case, a separate location somewhat removed from activities around the game board is best for City Council meetings. The room should be large enough to allow players to move around for discussions between teams.
Teams receive $100,000 if beginning at Round 1. If beginning at Round 3, give each team the amount of money indicated on their team scenario at the beginning of Round 3.
Operators should avoid the temptation to give teams more money than indicated since too much money makes decisions too easy and players fail to consider all the implications of their decisions. The Operator may make small loans to individual teams to close small gaps in funding needed at important decision points. However, teams should not be allowed to owe more than 25% of their total assessed value, and payments on principal and interest should be made every round.
Opening: As players arrive, try to seat them among varying team locations. This makes it more likely they will deal with team-mates they don’t know as well as those they came in with. Conversely, it gives them useful contacts on other teams that can help in later negotiations. Colored name tags indicating team colors help players and operators keep track of the team each person represents.
Have each team choose one member to be their representative on City Council and urge Council to meet early in the game. If beginning at Round 1 and the three ward system is used, the first election must be delayed until after all teams have finished construction. Remind Council that setting next round’s tax rate and deciding on next round’s municipal services are high priority issues. Additional suggestions for each of the steps of play follow:
1. Buy Land: Land bidding can become chaotic and waste valuable learning time if not fairly well controlled by the Operator. The minimum price of land from the Operator is $1000 and bids are in $100 increments. In the first round, allow five minutes for each team to submit one bid using Form A. Open all five bids and announce the
Each Team may elect one member to the City Council who may be replaced at the beginning of any odd numbered round by a majority vote of the members of that team. City Council is in session when all members have been informed of a meeting and more than half its members are present at the announced time. City Council may elect one of its members as chair to serve until replaced or the position is eliminated. The game will not be paused to await decisions by Council. The Game Operating Director is the final authority on the legitimacy of any Council actions or proposed ordinances. Council should try to cover the following agenda:
Tax Rates - Any changes in the tax rate must be given to the Accountant by the end of each round. If no change is indicated, the prior tax rate remains in effect.
Land Use Controls - Council may enact any of a variety of land use controls so long as they are ruled legal by G.O.D.
Planning - Council is responsible for proposing how and where the state provided Bridge, 10 Primary Road segments, and Terminal are to be placed at the end of round 5. Council’s proposal must be approved by 60% of all voters in a public referendum to take effect. If approval fails, a modified plan may be presented at the end of the next round.
Economic Development - Council may seek new investment in the city by inducing an outside agency to establish a Regional Headquarters in the City. A Regional Headquarters is assessed at $80,000, requires one Municipal Service unit, consumes $4,000 worth of Business Services each round, and employs 4 worker units at the fixed City wage rate. Negotiations with the outside company are covered by G. O. D.
The odds of enticing a Regional Headquarters are 10% unless Council increases the odds by offering one or more of the following incentives, each of which increases the odds of “winning” by 10%. The City must pay $2,000 for each attempt, however.
- A 50% tax abatement for five rounds.
- A suitably improved parcel paid for by the City or someone in the community.
- A low interest (5%) construction loan of $50,000
- One or more Regional Headquarters already exist in the community
- The community has more than 50,00o persons (20 Residential units)
- City indebtedness is less than 30% of its debt limit.
Part 1C. Operator’s Instructions
Equipment Needs:
- Playing board marked with a 10 x 10 grid;
- Wooden or plastic blocks in three shapes for each of the major types of land uses, each shape in several different heights to represent varying levels of intensity of use;
- Play money, pencils and paper;
- Chips or flags in five colors to show team ownership;
- Probability dice or a random number generator;
- Pins to indicate municipal services;
- Markers to indicate primary roads;
- Movable tables and chairs;
- An assistant to handle accounting;
- A hand calculator;
- Player's Instructions for each player;
- A City Council Agenda for each Council member;
- Current land use maps for each team, City Council, Operator, and Accountant;
- Instructions for Operator and Accountant;
- Copies of blank forms for use during play.
Timing: Allow 2-3 hours to complete the first two rounds in a single session. Stopping before the end of the second round may leave players intimidated by the complexity of the game and unwilling to play again. Later rounds take about 30 minutes, and may be played sequentially or at daily or weekly intervals.
Options: The game may start at either Round 1 or Round 3. If starting with Round 3, use the scenario and forms provided in Part 2 of this manual including the unique scenario for each team describing its current economic and political situation.
City Council is usually made up of one representative from each team. An interesting variation occurs if, instead, Council is made up of three members each elected from one of three wards defined on the board. Election is then by ward with one vote per residential unit in each ward. This creates a very different political dynamic as well as shifts some of the influence away from large employers and tax payers.
Room Arrangements: Three persons per team at a minimum seems to work best for generating good discussions among payers. More than five or six per team becomes difficult to handle. With ten or less players, they may be seated around a single large table containing the game board and equipment, with the Game Operator and the Accountant at one side.
With more than ten players, separate tables should be provided for each team arranged in a U shape around a central table containing the playing board. The Operator and Accountant should be placed together at the open end of the U layout. In either case, a separate location somewhat removed from activities around the game board is best for City Council meetings. The room should be large enough to allow players to move around for discussions between teams.
Teams receive $100,000 if beginning at Round 1. If beginning at Round 3, give each team the amount of money indicated on their team scenario at the beginning of Round 3.
Operators should avoid the temptation to give teams more money than indicated since too much money makes decisions too easy and players fail to consider all the implications of their decisions. The Operator may make small loans to individual teams to close small gaps in funding needed at important decision points. However, teams should not be allowed to owe more than 25% of their total assessed value, and payments on principal and interest should be made every round.
Opening: As players arrive, try to seat them among varying team locations. This makes it more likely they will deal with team-mates they don’t know as well as those they came in with. Conversely, it gives them useful contacts on other teams that can help in later negotiations. Colored name tags indicating team colors help players and operators keep track of the team each person represents.
Have each team choose one member to be their representative on City Council and urge Council to meet early in the game. If beginning at Round 1 and the three ward system is used, the first election must be delayed until after all teams have finished construction. Remind Council that setting next round’s tax rate and deciding on next round’s municipal services are high priority issues. Additional suggestions for each of the steps of play follow:
1. Buy Land: Land bidding can become chaotic and waste valuable learning time if not fairly well controlled by the Operator. The minimum price of land from the Operator is $1000 and bids are in $100 increments. In the first round, allow five minutes for each team to submit one bid using Form A. Open all five bids and announce the
winning bids, collecting the money and having teams place their colored chip on the land just purchased to indicate ownership. Repeat this twice, in each case being careful to give the winning bid slips to the Accountant so he can make appropriate entries in Form E. Property Holdings and Assessments. After Round 1 each team is allowed to bid once for up to three separate land parcels.
2. Municipal Services: The City Council announces the location and level of Municipal Services to be provided. If the Council is not ready with a decision in Round 1, allow the teams themselves to make the decision by majority vote. However the decision is made, advise them to be moderate since they will have to pay for the capital and operating costs from their taxes whether or not the services are immediately put to use. On the other hand, no development can occur unless services are provided ahead of time where needed.
Place one or two push pins on each parcel to be serviced, one pin indicating low level and two indicating high level of services. Municipal services may only be installed to parcels adjacent to parcels already serviced at the same level. The first parcel serviced must be adjacent to the river. About 12 push pins are usually enough for the first round. Inform the Accountant of the total number of pins added each round.
Remind the Council that services must be provided for both current and future needs, but that providing them too far in advance is poor planning and wastes scarce resources.
3. Construction: Teams often need extra time to negotiate with each other for jobs, workers, and customers prior to and during Construction. However, after 5-10 minutes, press them to make their decisions, allowing them a few minor adjustments before the end of this step of play. The Operator should advise against unwise construction decisions, especially during the first few rounds. Common errors are building Industry too far from the terminal and without making sure that some other team will be building Residences likely to provide workers. There is also a tendency to build too many stores before they realize the number of customers needed to make it profitable.
4, Employment: Each residential unit can provide one unit of labor. Shopping districts each require one unit of labor, Light Industry districts require two and Heavy Industry districts can employ up to four units. Employment agreements are formalized by both employer and employee teams writing Work Contracts and exchanging them with each other. Wages are fixed at $5,000 to avoid labor-management disputes which, though engrossing, can delay the game and draw attention away from land use issues. Employment contracts can be changed only during rounds divisible by five.
2. Municipal Services: The City Council announces the location and level of Municipal Services to be provided. If the Council is not ready with a decision in Round 1, allow the teams themselves to make the decision by majority vote. However the decision is made, advise them to be moderate since they will have to pay for the capital and operating costs from their taxes whether or not the services are immediately put to use. On the other hand, no development can occur unless services are provided ahead of time where needed.
Place one or two push pins on each parcel to be serviced, one pin indicating low level and two indicating high level of services. Municipal services may only be installed to parcels adjacent to parcels already serviced at the same level. The first parcel serviced must be adjacent to the river. About 12 push pins are usually enough for the first round. Inform the Accountant of the total number of pins added each round.
Remind the Council that services must be provided for both current and future needs, but that providing them too far in advance is poor planning and wastes scarce resources.
3. Construction: Teams often need extra time to negotiate with each other for jobs, workers, and customers prior to and during Construction. However, after 5-10 minutes, press them to make their decisions, allowing them a few minor adjustments before the end of this step of play. The Operator should advise against unwise construction decisions, especially during the first few rounds. Common errors are building Industry too far from the terminal and without making sure that some other team will be building Residences likely to provide workers. There is also a tendency to build too many stores before they realize the number of customers needed to make it profitable.
4, Employment: Each residential unit can provide one unit of labor. Shopping districts each require one unit of labor, Light Industry districts require two and Heavy Industry districts can employ up to four units. Employment agreements are formalized by both employer and employee teams writing Work Contracts and exchanging them with each other. Wages are fixed at $5,000 to avoid labor-management disputes which, though engrossing, can delay the game and draw attention away from land use issues. Employment contracts can be changed only during rounds divisible by five.
5. Shopping: Every residential unit must purchase both Convenience Goods and Specialty Items each round from either the Operator or a local store owner. Store owners usually set prices far enough below the catalog prices offered by the Operator to attract customers who must pay transportation costs to shop locally. Prices charged by the Operator include delivery costs.
All customers, regardless of distance travelled, pay the same price. When setting prices, store owners should plan on future customers as well as competition from other stores that might be built in the future. Prices may be changed only during rounds divisible by five. Both customer and store owner should complete and exchange a Shopping Contract Form to avoid misunderstandings in later rounds.
6. Payments: The Operator pays Industries their income, pro-rating for less than full employment. At the same time the Operator collects Shopping Costs from teams not using local Stores or Business Services. During the first round, talk each team through payments, taking salaries first followed by shopping costs. After two rounds of play, teams should be keeping track of their own inter-team payments aided by their employment and shopping contracts. Sometime a team fails to keep track of what is owed them and others take advantage of them. G.O.D. is under no obligation to look after them once they have player two rounds.
7. Transportation costs: Each team’s costs for transportation arfe tallied by the Operator and collected at this point. Changes in Origins or Destination should be noted as changes on the Transportation Work Sheet and the changes added to the previous round’s costs to get costs for the current round.
Form D. Transportation Work Sheet
6. Payments: The Operator pays Industries their income, pro-rating for less than full employment. At the same time the Operator collects Shopping Costs from teams not using local Stores or Business Services. During the first round, talk each team through payments, taking salaries first followed by shopping costs. After two rounds of play, teams should be keeping track of their own inter-team payments aided by their employment and shopping contracts. Sometime a team fails to keep track of what is owed them and others take advantage of them. G.O.D. is under no obligation to look after them once they have player two rounds.
7. Transportation costs: Each team’s costs for transportation arfe tallied by the Operator and collected at this point. Changes in Origins or Destination should be noted as changes on the Transportation Work Sheet and the changes added to the previous round’s costs to get costs for the current round.
Form D. Transportation Work Sheet
8. Taxes: A Council member or the Accountant should report community income and expenditures each round plus the level of indebtedness. City Council then sets the tax rate for the next round. If Council fails to set a new rate, the old rate continues unchanged. The Tax Rate for the first round has been set at 5% of total Assessed Value.
If the community exceeds its debt limit, future Municipal Services must be paid for in advance and no new bond issues are allowed. If a team is unable to pay taxes for two successive rounds, the Council may foreclose on some of the team’s property, counting its assessed value towards payment of the past due taxes.
Loans to players from the Operator should be limited and may not exceed 25% of each team’s total assessed value. Keeping the interest rate at10% per round should discourage prudent teams from relying too heavily on borrowing. Each loan must be repaid within five rounds with one-fifth the principal plus interest paid each round. Loans between teams are not allowed. The Operator should ignore any sub-rosa loans between teams which may occur and refuse any assistance in settling disputes about repayment.
9. Depreciation: An optional ninth step may be used used in longer running games. Details are presented in section E. Entropy in CLUG.
DEBRIEFING
At the end of the game allow about thirty minutes for players to discuss the way they played, its significance, and its relationship to reality. Properly handled, this debriefing period can be the most important part of the learning experience, helping players to understand what they have learned as well as to clear up misunderstandings or misinterpretations which may have occurred.
If needed to get the discussion underway, ask each team to describe its objective and whether it was achieved. Ask for descriptions of successful or unsuccessful agreements between teams.
Inevitably players ask who won. In reply ask what they think winning means: having the most money or the highest assessed value? having the most land or land in critical locations? being the most popular player? having residences in esthetically pleasing locations such as along the river? etc. Point out that success in real life is also not well defined and varies among individuals and over time. Perhaps winning simply means having a good time or learning something worthwhile. Perhaps everyone won? Is life really a zero sum game or is that only a convenient academic assumption?
Another useful strategy for debriefing is to ask players to rate and discuss the game on the following dimensions:
If the community exceeds its debt limit, future Municipal Services must be paid for in advance and no new bond issues are allowed. If a team is unable to pay taxes for two successive rounds, the Council may foreclose on some of the team’s property, counting its assessed value towards payment of the past due taxes.
Loans to players from the Operator should be limited and may not exceed 25% of each team’s total assessed value. Keeping the interest rate at10% per round should discourage prudent teams from relying too heavily on borrowing. Each loan must be repaid within five rounds with one-fifth the principal plus interest paid each round. Loans between teams are not allowed. The Operator should ignore any sub-rosa loans between teams which may occur and refuse any assistance in settling disputes about repayment.
9. Depreciation: An optional ninth step may be used used in longer running games. Details are presented in section E. Entropy in CLUG.
DEBRIEFING
At the end of the game allow about thirty minutes for players to discuss the way they played, its significance, and its relationship to reality. Properly handled, this debriefing period can be the most important part of the learning experience, helping players to understand what they have learned as well as to clear up misunderstandings or misinterpretations which may have occurred.
If needed to get the discussion underway, ask each team to describe its objective and whether it was achieved. Ask for descriptions of successful or unsuccessful agreements between teams.
Inevitably players ask who won. In reply ask what they think winning means: having the most money or the highest assessed value? having the most land or land in critical locations? being the most popular player? having residences in esthetically pleasing locations such as along the river? etc. Point out that success in real life is also not well defined and varies among individuals and over time. Perhaps winning simply means having a good time or learning something worthwhile. Perhaps everyone won? Is life really a zero sum game or is that only a convenient academic assumption?
Another useful strategy for debriefing is to ask players to rate and discuss the game on the following dimensions:
- Validity/Reality - How well does the game represent urban growth and development in the real world? In what ways is it similar and in what ways different?
- Sensitivity/Control - How well were you able to control the development of the community and the actions of your own team during play? Is this level of control typical in the real world?
- Utility/Learning - How much did you learn in playing the game? Was this a useful way to spend several hours compared to reading or listening to a series of lectures?
Part 1D. Accountant’s Instructions
Equipment needed: A couple of pencils with erasers, a small calculator, a Land Use Map, Form E. Property Holdings and Assessment, Form F. Total Assessed Value of Teams, Form G. Revenues From Teams, and Form H. Expenditures, Revenues and Surplus /Deficit.
Timing: To avoid delaying the game, the City Budget should be completed by the end of Step 8 (Taxes). During the first round you may have 45 minutes or more to accomplish this. Later rounds, however, move more quickly and you may have as little as fifteen minutes to complete your tasks. Delaying the game to wait for the accountant to complete final tallies impairs the spirit and excitement of the game. These tasks may seem complicated, but once understood, even high school students can perform them adequately with only a hand held calculator.
These instructions are laid out so they can be understood for either manual operation or for use with a set of interconnected spread sheets. Properly set up, the spread sheets make it faster and easier to complete, but the accountant must understand the underlying logic and sequences before using previously prepared spread sheets.
Property Ownership and Assessment records are public and must be made available to players upon request. Keep them up to date and accessible. However, you are not obliged to explain them to players if you are pressed for time.
As winning bids for land are received during Step 1, record the location, team owner, round purchased, and amount paid, in columns 1 to 4 of Form E illustrated below. USE A PENCIL to simplify later changes. Begin assessing land value as soon as possible after purchase, rounding all figures to the nearest $100.
If a team buys property from another team, record the new owner, reduce the assessed value of the seller, and add the new assessed value to that of the buyer. Land is assessed at its market value reflecting nearby land prices, level of Municipal Services, and experience with the game. As each parcel is assessed, enter it on Form E in the next to the last column. Lots near the terminal are usually assessed at $5-10,000 while lots further away are usually assessed at
Form E. Property Holdings and Assessments
Equipment needed: A couple of pencils with erasers, a small calculator, a Land Use Map, Form E. Property Holdings and Assessment, Form F. Total Assessed Value of Teams, Form G. Revenues From Teams, and Form H. Expenditures, Revenues and Surplus /Deficit.
Timing: To avoid delaying the game, the City Budget should be completed by the end of Step 8 (Taxes). During the first round you may have 45 minutes or more to accomplish this. Later rounds, however, move more quickly and you may have as little as fifteen minutes to complete your tasks. Delaying the game to wait for the accountant to complete final tallies impairs the spirit and excitement of the game. These tasks may seem complicated, but once understood, even high school students can perform them adequately with only a hand held calculator.
These instructions are laid out so they can be understood for either manual operation or for use with a set of interconnected spread sheets. Properly set up, the spread sheets make it faster and easier to complete, but the accountant must understand the underlying logic and sequences before using previously prepared spread sheets.
Property Ownership and Assessment records are public and must be made available to players upon request. Keep them up to date and accessible. However, you are not obliged to explain them to players if you are pressed for time.
As winning bids for land are received during Step 1, record the location, team owner, round purchased, and amount paid, in columns 1 to 4 of Form E illustrated below. USE A PENCIL to simplify later changes. Begin assessing land value as soon as possible after purchase, rounding all figures to the nearest $100.
If a team buys property from another team, record the new owner, reduce the assessed value of the seller, and add the new assessed value to that of the buyer. Land is assessed at its market value reflecting nearby land prices, level of Municipal Services, and experience with the game. As each parcel is assessed, enter it on Form E in the next to the last column. Lots near the terminal are usually assessed at $5-10,000 while lots further away are usually assessed at
Form E. Property Holdings and Assessments
$1-3,000 each depending on level of services, roads, and how high others have bid for land. Buildings are assessed at their construction cost but may be reassessed later in the game at their depreciated value based on 5% depreciation per round since built.
As each team finishes construction, the assessed value of new land and buildings must be added to the team’s total assessed value in the previous round as reported on Form F.
As each team finishes construction, the assessed value of new land and buildings must be added to the team’s total assessed value in the previous round as reported on Form F.
Total Assessed Values for Teams. To determine taxes due from each team and thus the current tax revenues for the city, multiply each teams total assessed value on Form F by the current tax rate and record taxes due on Form G. Tax Revenues.
After City Council has decided on Municipal Services, record the number of new units provided in column 2 of Form H. Expenditures/Revenue. In the next column enter the number of old units now operating which is simply the previous number of old units plus the number of new units added in the previous round. Record the total number of housing units now in place in the third column.
Now compute total expenditures as the sum of $2000 times the number of new municipal service units in column plus $100 times the number of old municipal service units in column 3, plus $1000 times the number of residential units in column 4 plus or minus 10% of the previous round’s Surplus or Deficit in column 5. Enter that in column 6.
The current round’s surplus or deficit in column 7 is simply the sum of the current round’s tax revenues reported in Form G. minus total expenditures reported in column 6 of Form H. Add or subtract this number from new cumulative surplus or deficit in column 7.
Now compute total expenditures as the sum of $2000 times the number of new municipal service units in column plus $100 times the number of old municipal service units in column 3, plus $1000 times the number of residential units in column 4 plus or minus 10% of the previous round’s Surplus or Deficit in column 5. Enter that in column 6.
The current round’s surplus or deficit in column 7 is simply the sum of the current round’s tax revenues reported in Form G. minus total expenditures reported in column 6 of Form H. Add or subtract this number from new cumulative surplus or deficit in column 7.
Most states allow cities to run modest deficits up to about 10% of their total assessed value. That debt limit is computed as ten percent of the total assessed value for the city reported in Form F. Total Assessed Value. Enter the current debt limit in column 8.
Column 9 is the current deficit divided by the debt limit reported as a percentage. It is fairly common for cities to run deficits on the order of 40-50 % of their debt limit, but a value above 60%, suggests that the city may be getting into financial trouble, a signal for either higher taxes or reduced expenditures.
If the city exceeds its debt limit it has lost its ability to borrow funds so any future expenses must be paid for in advance. This creates a considerable burden on a city, one which it is unlikely to survive without filing for bankruptcy.
Begin reassessing land and buildings as soon as time allows. Changes in assessed value should reflect changes in the land market, location of new Municipal Services, and the depreciation of buildings at 5% per round. Your own judgement is important in reassessing land values and you should be ready to defend your decisions against irate tax payers. Reassessments should be done systematically, but as in the real world, completing them may take several rounds.
Assessors in the real world rely heavily on their own judgement in assessing value. Attempts to provide more rational and objective assessments in CLUG were discouraged as being ‘unrealistic’ compared to real world practices.
Column 9 is the current deficit divided by the debt limit reported as a percentage. It is fairly common for cities to run deficits on the order of 40-50 % of their debt limit, but a value above 60%, suggests that the city may be getting into financial trouble, a signal for either higher taxes or reduced expenditures.
If the city exceeds its debt limit it has lost its ability to borrow funds so any future expenses must be paid for in advance. This creates a considerable burden on a city, one which it is unlikely to survive without filing for bankruptcy.
Begin reassessing land and buildings as soon as time allows. Changes in assessed value should reflect changes in the land market, location of new Municipal Services, and the depreciation of buildings at 5% per round. Your own judgement is important in reassessing land values and you should be ready to defend your decisions against irate tax payers. Reassessments should be done systematically, but as in the real world, completing them may take several rounds.
Assessors in the real world rely heavily on their own judgement in assessing value. Attempts to provide more rational and objective assessments in CLUG were discouraged as being ‘unrealistic’ compared to real world practices.