http://forum.inklingmarkets.com/forums/1/topics/27 en-us 60 <p>That&#8217;s pretty much the way it works. When the market is closed you create a per-share value, and owners of the shares get that amount.</p> <p>As another comment you might want to set it higher (maybe $20 or so). Adjusting the value will mainly change the volatility to utility ratio.</p> <p>For example, if I think $5 is a good amount, I can&#8217;t invest very much in it before it is worth more than $5. This means the returns for those expecting a small number of coin flips is not worth the time it takes to click on your stock. If it were $20 for the first flip, and I think $50 is a good amount, then far more money can be invested before the stock is bumped over $50 making it more worthwhile.</p> Fri, 25 Aug 2006 16:50:49 -0000 forum.inklingmarkets.com:1:27:77 Brassiere http://forum.inklingmarkets.com/forums/1/topics/27 <p>Looks like the payout should be <span class="caps">PER SHARE</span>. I&#8217;ll adjust the wording. Is it correct that I can offer the payout on a <span class="caps">PER SHARE</span> basis? For example, if heads comes up on the 3rd try, that means a payout of $8. And can I make that $8 per share?</p> Tue, 22 Aug 2006 13:06:51 -0000 forum.inklingmarkets.com:1:27:76 MadMoneyMachine http://forum.inklingmarkets.com/forums/1/topics/27 <p>Take a look at my market called Petersburg&#8217;s Payout <a href="http://www.inklingmarkets.com/market/show/2063">http://www.inklingmarkets.com/market/show/2063</a> (based upon the Petersburg Paradox).<br />This is my first market, and it is a test of a classic puzzle.</p> <p>Do you think the payout is set up reasonably? I mean, theoretically the payout is infinite. But there&#8217;s a 50% chance the payout will be $2. I guess the proof will be in the wisdom of the crowd.</p> <p>Description:</p> <p>I will flip a coin until it comes up heads. Tails pays nothing. But if it comes up heads the first time, I will pay Paul $2. If it comes up heads the 2nd time, I will pay Paul $4. If it is the 3rd time, Paul gets $8. If it is the 4th time, Paul gets $16 and so on until heads comes up. How much will you be willing to pay Paul to take his place in the Petersburg Payout game?</p> Tue, 22 Aug 2006 12:42:58 -0000 forum.inklingmarkets.com:1:27:75 MadMoneyMachine http://forum.inklingmarkets.com/forums/1/topics/27