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miller22 (inactive)

miller22 (inactive)

Member Since 06 Aug 2003
Offline Last Active Mar 02 2019 07:59 PM

In Topic: Oil Price Hedging

06 September 2010 - 10:02 PM

Not so speak out of turn, but I had started the work on this although at a rudimentary level. It wasn't exactly the hedges you see today, but the same concept through pre-buying fuel at current rates. If the price of fuel went down, you lost out, but if it went up you were in the money.

The trick was setting the fuel price. The best way was to just use current oil prices since nobody truly knows if they'll go up or down. I tried scraping the fuel price for a while to get a good data set, but that only worked for a short while. I couldn't find a reliable data source for the oil/jet-A fuel price.

The other issue is with the accounting. The way the game was set up earlier, you would have had to pay cash up front for the fuel and then each flight would have essentially free fuel. However, in order to have a true look at whether the flight was profitable, you had to include fuel at the price they paid. Then you'd have to track the amount they bought so that it went back to market price when they ran out.

All in all, it was a very simple concept that became much more complex when you tried to implement. Not impossible, just complex.

In Topic: Game Reset

01 January 2010 - 01:50 PM

The game has been reset and is now active again. Welcome to 1970!

You will also start with $65 million.