Labor vs Capital

You are Labor. Each round, you choose how much to invest and what share of output to claim. Capital invests automatically. The rest of each side’s wealth (not invested) is kept immediately.

How this works

  1. You choose Labor invest %. That fraction of your current wealth is invested; the rest is kept as cash.
  2. Capital invests automatically. By default, Capital invests 50% of its wealth each round (changeable in Advanced settings).
  3. Production: The investments L and K go into Cobb–Douglas: Y = A · L^α · K^(1−α).
  4. You choose the split of Y. If you choose s%, you get s% of Y and Capital gets (100−s)%.
  5. Wealth updates: Next round wealth is (kept cash) + (your share of output). Then repeat.
Math details (optional)

Y = A · L^α · K^(1−α), with A≥0 and 0<α<1. If L=0 or K=0, then Y=0.

Wealth updates each round:
WL' = (WL − L) + s·Y, WC' = (WC − K) + (1−s)·Y.

Round
0
Last output (Y)
—
Labor wealth
—
Capital wealth
—
50%
50%
Advanced settings

These are pre‑set and hidden so you can just play. Open only if you want to tune the model.

History (last 10)