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This paper studied the impact of simulation as a pedagogical tool on perceived effective learning. The three factors considered had differential impact on perceived effective learning measured in the form of integrated learning and decision making. Data were collected from a sample of students completing their first year of study at a b-school in India. It was found that team dynamics emerged as the most important dimension followed by instructor's role and learning process. The activities in simulation exercises which enhance team cohesiveness and effective role playing are detrimental for the perception of positive effective learning
