Basic Financial Planning (Page 9 of 9) in pdf

Basic Financial Planning Page 9

Each team has an allocation of £7,000 that they can spend to gain their must-win

concession plus any other they care to bid for.

The first thing is for the teams to negotiate the bidding order. If no agreement can be

reached, then the bids go from the oldest player/team member in each team to the

youngest. Then the teams circulate, trying to find out the other teams’ priorities and

trying to make deals on bidding. 10 minutes maximum.

Each team announces its bid for the first concession. If no bid reaches the (secret) minimum

price, the Council may go to the team making the highest bid and ask them if they wish to

increase their bid. If not, the second highest can make a bid. If no team will increase their

bid, the concession is not awarded. This process continues for each concession or until all

teams have spent their money.

The winning team is the one making the most profit from its concessions as follows:

(total value concessions + money left) - (must-win cost - its minimum price)

Answers can be found in the appendix on page 415

P 167

Basic Financial Planning Page 9