The same way as you'd simulate any other political computer game. It's only the communication part which is the problem, and that's not part of the game mechanics.
Except that creating muds in which "players and mobs are hard to tell apart" is not unattainable, nor is it even remotely comparible with trying to fly to another galaxy.
There are plenty of them. Try the bots on many first-person shooters, or look at the tactics used by the computer in many RTS games, or the AI used in many other games - these represent the gaming aspects, the parts I've said repeatedly can be simulated to a reasonable degree. Sometimes the computer makes a mistake, but that is usually due to poor collision detection or line of sight, neither of which are an issue in most muds. But overall, it is indeed hard to tell the players and mobs apart.
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