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Strategies for each Individual Groups

• Group 1:
  

This team started round one by multiplying its own group’s weight by 4. Then seeing the other teams totals all higher at the beginning, and considering itself slightly lighter than the other Market-Makers, it increased this total by a few hundred. Interestingly the group bought at 3060 in round 2, then sold at just $10 higher in round 3. This group had nearly reached the true value of the good by round 4, but the first announcement from the “FED” caused it to react by raising its rates dramatically. These quickly came back down and by the end of the game this team was the only one who had bracketed the true market value. If the game had been allowed to continue until all teams had reached this point, this group may have had a more positive outcome. However, the current inflated market price left them with reasonable losses.

• Group 2:
  

This group started in the same fashion as group 1, and similarly to all the groups, by multiplying its given group weight by 4 in an attempt to guess the price, this left them slightly high. For round 2, they divided all of the groups’ initial offers by 4, and then added them together. After a few rounds trading in this area, group 2 completely changed their strategy, and began coming in with extremely high bid/ask numbers, they did this because they thought the rest of the market was undervaluing the asset, and by making such an outlandish offer, they guaranteed themselves a chance to buy from everyone. Acting extremely harshly to the initial “FED” announcement, this group failed to adjust to later notices, and this continued to hurt there situation.

• Group 3:
  

This group came out with an initial offer with a lot of distance between them and the other teams, it decided to use a risk averse strategy and not make a trade. Having offers that were much to low in the beginning, this group did not overly adjust to the FED announcements in round 4 and this generated profits. Finally, when the later FED statements came out that showed prices were too high, they knew they were on the right track because this price was so overvalued due to group 2’s play.

• Group 4:
  

The most successful group in the game, but most likely due to the fact that the game ended early. Initially thinking they were slightly on the heavy side, they dropped there weight down and then multiplied it by 4. They had a similar strategy as group 2, just not as aggressive, thinking prices were low, they inflated their bid ask prices slightly so they could sell at a higher rate if possible, or at least be able to view a lot of buy offers. The group made most of its money in the early rounds however, when it took advantage of some really low buy offers.

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