But if you are trading a property, what is it worth? Centives, an economics blog at Lehigh University, created a model. (It looks deterministic to me.) It seems like a discounted cash flow model, except in Monopoly, interest rates are 0% – loans are interest-free.
You type in the property name, number of players and number of extra rounds you think the game will go, and it estimates what a property is worth.
As actuaries, you want to know the assumptions. Key ones include:
- All properties complete monopolies upon acquisition.
- All properties have hotels constructed immediately after purchase.
I played around with it a bit. Basically Boardwalk grinds everything else to dust.
(h/t Tyler Cowen.)