Stock Market - a new source of funding?

[Gaius Marius]

Has there been any discussion about simulating a stock market to do two things:

1)  Source of cash at startup as well as for raising cash (of course dividends would have to be paid).

2)  A better metric of success.  The stock price could be the ultimate measure of success as investers display their confidence by buying or selling.  How many large carriers have low stock values?  How many smaller ones have comparitively higher values? 

Any thoughts?


GM

[Kontio]

There has been quite a lot of discussion about this.

Cheating is always a concern when enabling transfer of funds between airlines.

[Kastor]

Yeah, that is nice & interesting idea, it would be nice to have stock exchange in game.

[Gaius Marius]

Until the cheating can be eliminated you could use a strictly automated stock market that takes into account the strict economics of the players' strategies.  In other words, have a computer simulated stock price and as the player (CEO) makes decisions the stock price would move up or down according to how tightly the player manages the risk while maximizing the reward.

For example, high debt load with few assets would be a negative driver while newer a/c with exclusive routes would be a positive, etc.

[charger27]

In case you haven't been keeping up with current real-world events... 

I can see a whole different set of problems with guys going public too soon in a stock market environment.
Unless it is simply an auto thing... but if done properly, people need to realize that with the potential influx of funds will also come a lack of personal control (at the mercy of a board who can turf you).
Publicly traded means ultimate accountability to shareholders.

And who are the shareholders... other airlines in the game, or just computer generated?
If it is the computer, and it is configured as tight as the other settings, guys will be getting fired from their own airlines in very short order over risky short-term decisions.
Other airlines... what would be the takeover potential of your competitors (specifically, hostile moves ON YOU)?

Whatever... mark me down as no opinion one way or the other.
Don't see it being a major part of my game anyway.
There are benefits to staying privately owned.

[Gaius Marius]

In case you haven't been keeping up with current real-world events... 

I can see a whole different set of problems with guys going public too soon in a stock market environment.
Unless it is simply an auto thing... but if done properly, people need to realize that with the potential influx of funds will also come a lack of personal control (at the mercy of a board who can turf you).
Publicly traded means ultimate accountability to shareholders.

And who are the shareholders... other airlines in the game, or just computer generated?
If it is the computer, and it is configured as tight as the other settings, guys will be getting fired from their own airlines in very short order over risky short-term decisions.
Other airlines... what would be the takeover potential of your competitors (specifically, hostile moves ON YOU)?

Whatever... mark me down as no opinion one way or the other.
Don't see it being a major part of my game anyway.
There are benefits to staying privately owned.

I most certainly have been keeping up with current real world events, although not so much with the airlines ...

Firstly, I think that going public would be the first $4 million you start the game with.  Very few airlines start up privately. 

Secondly, I actually disagree with you on the lack of control issue.  With a very few recent exceptions, CEO's don't get fired.  Often bankruptcy doesn't even prompt their dismissal.  Who has been running GM these last number of years?  In general, boards follow the executives ... why? ... because they are usually executives themselves.  I would say that stock performance would not be related to job security.  Maybe it could be related to bonu$ though.  Of course, that would definitely NOT be reality based.

Thirdly, I was thinking the shareholders would be mostly controlled by the computer.  The idea of player ownership is appealing to me but what will stop large players from swallowing up small ones?  Although maybe foreign ownership laws would minimize this to some degree as well as encourage players to start up in smaller countries to avoid being bought out.  Maybe belonging to an alliance would enable individual companies to fight off hostile takeovers.  I haven't thought this line of thinking through enough to see a solution but I'm sure there is one.

Mainly, I was just thinking it could be a possible source of financing but, more importantly, a pretty solid metric by which to compare your company to others.  It would sure provide another, more realistic side to the game.  Most CEO's are less concerned with routing and more concerned with stock prices.

[oswegobag]

The profit margin should be very similar to the stock market price.... well at least once we remove the purchase of planes as an expense..... but I really like the ideal of the stock market. I am in this game for more of the business aspect.

[Gaius Marius]

I was thinking the stock price could reflect a little more than just profit margin.  It could be driven by modifiers that show what investers think of future possible performance. 

I am also in the game for more of the business side.  I think Sami et, al have done an amazing job developing this game.  I would like to still see a greater business side to it but I understand it is a work in progress.  I hope our input on possible features does not in any way cause Sami and friends to think I/we don't appreciate what they have already done and are doing.  I just get excited by the potential this game has and would like to see it grow.