What factors differentiate the various ampaign Difficulty settings?

[piranha45]

As the difficulty increases, do towns revolt more easily? Is the AI smarter with its troops (such as keeping armies together instead of sending them at you piecemeal)? Do you get less money per turn? Do the AIs cheat more blatantly? Or what?

[LeonidasOfSparta]

-Easy/ Your units get attack/Defence bonus , you get boast to economy-[
-Medium/None , nor AI nor you , gets bonuses nor in battle nor in economy-
-Hard/ AI gets small bonuses both in battle / economy-
-VeryHard/ AI cheats a lot in battle , autoresolve becomes REALLY stupid, your economy suffers while AI's boasts up-

-I suggest Vh/Vh difficulty-

/Leonidas

[NobleNick]

As the difficulty increases, do towns revolt more easily? Is the AI smarter with its troops (such as keeping armies together instead of sending them at you piecemeal)? Do you get less money per turn? Do the AIs cheat more blatantly? Or what?

You are asking specifically about CAMPAIGN difficulty? Campaign difficulty does not affect battles, and definitely does not make the AI smarter. I did not think that the difficulty setting affected your economy, but I am pretty sure that at harder levels the AI economy gets a boost (bonus cash to each AI faction every turn). Also, I noticed that at harder campaign levels the diplomacy is almost totally broken: Everyone is a butthead on the diplomacy screen; and your neighbors all attack you instead of each other.

For battle difficulty, my understanding is that the enemy soldiers are unaffected, but that at increasing levels of difficulty, your troops get a blanket morale penalty of -2 points on hard and -4 points on very hard (and +2 on Easy?). Again, the AI does not get any smarter.