Last week, two of my finance colleagues and I took our team to lunch to celebrate the fun of the competition to date. We hope all your teams are enjoying the ride as much as ours. We find our students are using a lot of what we’ve taught them, although sometimes in unexpected and creative ways.
This may be one of the few times when it is a relief to be trading “funny money” and not actually running a fund. In the spirit of a market in which it is an achievement just to keep all one’s wheels on the road, the above logo, generated by our students on the marketing and branding side of the shop, and based on the Ohio license plate, seem appropriate. Notice the expiration date… the concept of which generated a few interesting “what if” questions amongst our faculty.
What if… teams were penalized for excessive volatility?
What if… teams were penalized for not trading?
What if… instead of ending the game on 11/18, the game was unexpected declared over a week early?
Since none of these apply, it will be interesting to see how behavior unfolds, especially toward the end of the competition. It may push the boundaries of what we know as behavioral finance…
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