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Card Market-Making

Market-MakingHard
25 min
45 pts

Description

Trade face-up/down cards. Balance spread, size, and risk as information reveals.

Game Rules

You're a market maker trading cards. Some cards are face-up (known), some face-down (unknown). Quote bid/ask spreads and manage inventory as information is revealed.

Examples

Widen spread for unknown cards

Narrow spread as information reveals

Manage inventory risk

Hints

  • Adjust spreads based on information

  • Consider adverse selection

Solution (Click to reveal)

Dynamic pricing based on information. Wide spreads for uncertainty, narrow as information improves. Manage adverse selection.

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