Difficulty levels affect a number of things. Starting troops (if you play as Mongol), the initial honor level of the enemy troops, the strategic_battle AI - specifically its threshold before it decides invade or retreat - its use of terrain and concealment in battle, the ability to rally troops, as well as a "difficulty" bonus to unit honor in battle. Not to mention that the AI strategically seems to gain more buildings initially, as well as more koku every year. However, it MAY be that at higher levels the AI simply spends money more wisely.

Hopes this helps.
Qapla!


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BSM_Skkzarg
"A mind is a terrible thing to taste."