Monopoly – Shadow Banking System Edition(tm)

Monopoly is a painfully boring game. However, I’ve invented a way to
make it fun. I call it Monopoly – Shadow Banking System Edition(tm)

Here’s how it works. It’s the same as regular monopoly except you can
make any kind of deal and write any contract you want, including but
not limited to:

1) Equity financings. E.g. Player A gives B $1000, and in return A
gets 5% of future cash flows from so and so of B’s properties.
2) Derivatives. Players can sell you an option to buy a property, an
option on cash flows or even an option an options. You can write call
options, put options, futures, collars, butterflies – anything you can
think of.
3) Securitization. You can securitize whatever you want. Don’t get
your mortgage from the bank – bundle them up and create securities.
Split the interest from the principal and sell them separately.
Whatever. If you can write it in a contract and find a counterparty,
it’s legal.

Additional optional rules:
– “Too big to fail” if you have at least 2 monopolies and are going
out of business, roll one die and if you get anything except a 6, the
bank gives you $10,000.
– Trade real money for fake money. Being rich in real life gives you
an unfair advantage – just like real life.


6 thoughts on “Monopoly – Shadow Banking System Edition(tm)

  1. Anonymous says:

    I played a less advanced version of this as a kid. We allowed any deal so long as the people making the deal agreed. My strategy usually involved making reciprocal free rent deals with all the other players so they would take each other out.

  2. chris m. says:

    How do you structurally function call and put options? I mean, sure, you call the strike price anything you want and you can specify time in terms of the number of turns per player: but how do you account for the market price of a security at the time the option is due? Group consensus (that sounds evil)?

  3. chris dixon says:

    Great question.  I would say you agree on a valuation method ahead of time.  Eg you have a european-style call option on park place with a strike of $1000 and maturity in 5 turns, and you pre agree to value park place at 10 earnings over the period of the option.Sent from my iPhone

  4. Mark Essel says:

    Laughing at too big to fail. Now I gotta play

  5. Christopher Swift says:

    Don’t forget privatizing the jail, so you do collect $200 and pass go.

  6. philmichaelson says:

    another optional rule:- “one in a hundred year event”. though models say it should ‘never’ happen…it happens. after each round (that is, after every player has a turn), the die is rolled. If it’s a 6, it’s a “once in a hundred years” round. during this round, the bank/government will buy any property you land on for you–think of it as an asset backed financing at 0%.

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