Measuring Performance in Dynamic Decision Making: Reliability and Validity of the Tailorshop Simulation

The Tailorshop simulation is a computer-based dynamic decision-making task in which participants lead a fictional company for 12 simulated months. The present study investigated whether the performance measure in the Tailorshop simulation is reliable and valid. The participants were 158 employees from different companies. Structural equation models were used to test τ-equivalent measurement models. The results indicate that the trends of the company value between the second and the twelfth month are reliable variables. Furthermore, this measure predicted real-life job performance ratings by supervisors and was associated with the performance in another dynamic decision-making task. Thus, the trend of the company value provides a reliable and valid performance indicator for the Tailorshop simulation.