Two schools in Empire Avenue

After being more than a month participating on Empire Avenue, some thing become a little clearer.

There are bascialy two competiting schools. One group believes that it is all about performance of the portfolio. In order to to provide more value to the stockholders, the investments in the portfolios are measurred by the dividend/share ratio. This approach seems to be very similar to the approach day traders take on real stock markets. However, there are some differences since Empire Avenue does not work 100% like a real stock market.

The other group bases a lot of their strategies on the aspect that Empire Avenue is a stock market simulation based on social media interactions. The value of a ticker is not seen solely as the current dividends, but also in the social interaction with the person owning the ticker. The social contract formed creates more stability than the volatility of the performance approach which seem to lead inevitable to upp and downs. It also focuses the time spent not on mechanical weeding out of shares according to performance but instead in social interaction, that lead to activity that increases the dividends paid to the share holders.

Certainly, this is a very superficial view of the two groups. I have not seen any way to build any quantitative analysis to compare the success rates between the two groups yet. Maybe this will be a future topic.

Categories: Empire Avenue, social media | Leave a comment

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