Core Mechanics

The Economic Simulation Engine

Trade Clash operates as a sophisticated agent-based model where autonomous AI systems manage national economies in real-time. Understanding these mechanics helps players develop winning strategies.

Economic Indicators

Six key metrics define each nation's economic health:

GDP Growth Rate

Range: -15% to +15% annually What it Measures: Economic expansion or contraction Strategic Importance: Extreme values predict policy overcorrections

High growth often precedes crashes. Negative growth triggers desperate measures. The sweet spot (2-4%) rarely lasts—AI agents always push boundaries.

Trade Balance

Range: -10,000 to +10,000 credits What it Measures: Export strength versus import dependence Strategic Importance: Imbalances drive trade wars and currency crises

Surplus nations grow arrogant. Deficit nations grow desperate. Both create opportunities for astute players.

Inflation Rate

Range: -5% to +20% annually What it Measures: Currency stability and purchasing power Strategic Importance: Central bank policy trigger

Watch for the cascade: inflation rises → central banks panic → interest rates spike → growth collapses → deflation risk → policy reversal.

Unemployment Rate

Range: 0% to 30% What it Measures: Social stability and consumer health Strategic Importance: Revolution predictor

Above 15% triggers populist policies. Above 20% ensures economic irrationality. Above 25% guarantees regime change.

Government Budget

Range: -5,000 to +2,000 credits What it Measures: Fiscal sustainability Strategic Importance: Policy flexibility indicator

Surpluses enable aggression. Deficits force desperate choices. Watch for the death spiral: deficit → austerity → recession → larger deficit.

National Stability Index

Range: 0% to 100% What it Measures: Composite sociopolitical health Strategic Importance: Chaos multiplier

Below 60% amplifies all decisions. Below 40% ensures overreactions. Below 20% makes every stake a potential winner.

Resource System

Four resource categories drive all economic activity:

Raw Materials

Examples: Ore, grain, timber Function: Foundation for all production AI Behavior: Hoarded during uncertainty, weaponized during conflicts

Resource-rich nations like AfriUnion alternate between largesse and lockdown. Resource-poor nations like TechAsia oscillate between innovation and desperation.

Energy Resources

Examples: Oil, gas, uranium Function: Powers industry and society AI Behavior: Most politicized resource category

Energy exporters (SandStorm) manipulate supply for leverage. Energy importers pursue impossible independence. Price shocks cascade globally within hours.

Industrial Goods

Examples: Steel, semiconductors, chemicals Function: Transforms raw inputs into usable products AI Behavior: National pride wrapped in economic policy

Every nation wants industrial dominance. None achieve sustainable advantage. The pursuit creates magnificent policy disasters.

Consumer Goods

Examples: Electronics, vehicles, apparel Function: Maintains citizen satisfaction AI Behavior: Last priority until revolutions threaten

Smart players track consumer goods shortages—they predict political instability three rounds before it erupts.

Trade Mechanics

The Gravity Model

Trade between nations follows modified gravity equations:

Trade Flow = (GDP₁ × GDP₂) / (Distance × Political Friction × Tariffs)

Large economies should trade more. Neighbors should trade more. Allies should trade more. AI agents ensure none of this happens smoothly.

Bilateral Relationships

Every nation maintains relationship scores (-100 to +100) with others:

  • Positive relationships reduce trade friction

  • Negative relationships multiply tariffs

  • Neutral relationships remain unstable

Relationships evolve based on:

  • Trade balance shifts

  • Policy externalities

  • Historical grievances

  • Random misinterpretations

Trade Wars

Follow predictable escalation patterns:

  1. Minor tariff adjustment (5%)

  2. "Proportional" response (15%)

  3. Retaliation spiral (30%)

  4. Economic nationalism (50%)

  5. Complete breakdown (embargo)

Each step typically takes 1-2 hours. Smart players position during step 2 for maximum profit.

AI Decision Framework

Understanding how AI agents process information creates predictive advantage:

Decision Cycle

Every hour follows four phases:

  1. Information Gathering (minutes 0-15)

  2. Problem Identification (minutes 15-30)

  3. Policy Selection (minutes 30-45)

  4. Implementation (minutes 45-60)

Players must analyze and stake before phase 3 completes.

Personality Matrices

Each AI agent weighs priorities differently:

  • Growth-focused (AmeriCorp): GDP über alles

  • Stability-focused (NordFreeze): Change equals threat

  • Trade-focused (PacificTrade): Flexibility supreme

  • Resource-focused (SandStorm): Leverage everything

Personalities create predictable blind spots. Blind spots create profitable opportunities.

Memory Systems

AI agents remember:

  • Last 10 interactions per nation

  • Major economic shocks

  • Policy successes/failures

  • Personal slights (weighted 3x)

Memory creates patterns. Patterns create predictability. Predictability creates profit.

Staking Mechanics

Basic Rules

  • Tokens: Start with 1,000 points per game

  • Stakes per round: Minimum 1, maximum 3 nations

  • Allocation: 1 point minimum per stake

  • Returns: 0.5x to 2.5x based on performance

Performance Calculation

Nation performance ranges from -10% to +15% hourly:

  • -10% to -5%: Return = 0.5x to 0.75x

  • -5% to 0%: Return = 0.75x to 1.0x

  • 0% to +5%: Return = 1.0x to 1.5x

  • +5% to +10%: Return = 1.5x to 2.0x

  • +10% to +15%: Return = 2.0x to 2.5x

Strategic Considerations

Conservative Play: Multiple small stakes, avoid extremes, compound slowly Aggressive Play: Large concentrated stakes, exploit volatility, accept variance Optimal Play: Varies by tournament phase, stack size, and leaderboard position

News Integration

Real-world headlines drive everything:

Event Categories

  1. Economic Data: GDP, inflation, employment reports

  2. Policy Announcements: Rate decisions, fiscal measures

  3. Trade News: Tariffs, agreements, disputes

  4. Geopolitical Events: Elections, conflicts, diplomacy

  5. Market Shocks: Commodity prices, currency moves

Impact Calculation

Impact = Base Severity × Personality Multiplier × Current Stress Level

Same news creates different impacts. A Fed rate hike might:

  • Devastate AmeriCorp (growth threatened)

  • Embolden NordFreeze (stability tool)

  • Confuse EuroPact (committee needed)

Cascade Effects

Primary impacts trigger secondary effects:

  1. Oil price spike

  2. Energy importers raise prices

  3. Inflation increases globally

  4. Central banks react differently

  5. Trade patterns shift

  6. New equilibrium emerges

Identifying cascade potential separates novices from experts.

Advanced Mechanics

Economic Interdependence

No nation operates in isolation. Key dependencies:

  • Supply chains span multiple nations

  • Financial flows connect all economies

  • Confidence spreads contagiously

  • Policy spillovers affect neighbors

Feedback Loops

Self-reinforcing cycles create extreme outcomes:

  • Success breeds overconfidence breeds failure

  • Failure breeds desperation breeds worse failure

  • Stability breeds complacency breeds instability

Emergence Patterns

Unprogrammed behaviors that consistently emerge:

  • Alliance formation and betrayal

  • Economic bloc development

  • Synchronized policy mistakes

  • Cascading collapse sequences

Mastery Path

Beginner Focus

  • Learn 3-4 nation personalities deeply

  • Track single indicators (GDP or inflation)

  • Place conservative stakes

  • Observe patterns

Intermediate Skills

  • Understand indicator interactions

  • Predict policy responses

  • Identify cascade opportunities

  • Manage risk systematically

Advanced Techniques

  • Model full economic cycles

  • Anticipate emergence patterns

  • Exploit temporal advantages

  • Optimize tournament position

Expert Edge

  • Read AI emotional states

  • Predict relationship evolution

  • Time cascades perfectly

  • Synthesize all information streams

Key Takeaways

  1. Indicators interact - Never analyze in isolation

  2. Resources cascade - Shortages compound exponentially

  3. AI has patterns - Personalities create predictability

  4. News multiplies - Same event, different impacts

  5. Time matters - Early recognition beats perfect analysis

Master these mechanics to transform economic chaos into tournament victory.

Next: Economic Systems → | Practice: Quick Start →

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