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The regenerative engine cycle, in which part of the thermal energy of the exhaust gases is stored internally, for use in the following engine cycle, is analyzed as a function of time and several design parameters: compression ratio, regeneration timing, equivalence ratio, regenerator design Reynolds number and engine speed. The effects of fluid friction and heat transfer in the regenerator are taken into account in the model. Calculations show that the regenerative engine maintains a substantial efficiency advantage over the conventional Otto cycle, even after fluid friction losses. The effects of the different design parameters are pointed out, as well as ways to optimize the performance of a regenerative engine.