The Big Short

Introduction -

Hello Juniors ! Welcome to your first Technothlon Mains event.

So let me just give you a review of what you will be doing in this event.

 In this event you have to buy commodities for your Superhero.

 There will be three closed bidding rounds, two trading rounds and one
open bidding round in this event.
 You are given ten different commodities, ten quantity each i.e. total One
Hundred commodities.
 Each commodity has its base price and some attributes. There are five
attributes for each commodity:
1. Weight
2. Attack
3. Health
4. Defense
5. Speed
 Initially you are given a sum of Rs. 1,500.
 After all the rounds of bidding the maximum number of commodities you
can have is 5
 The bid money should be in the multiple of 5.
 The bid money should be greater than or equal to the base price of the
commodity.
 You have to write the names of the commodity/commodities you want to
buy along with the money you want to bid on it on the provided slip.
 You have to calculate your remaining money after each round on your
own. Don’t forget to write the bid amount in the paper given to you.

Fixed Depreciation -

 If you don’t buy any commodity and you are idle in two consecutive
rounds then you will have a depreciation of 8% in your remaining money.
Deposits -

 You have been given a sum of money.

 You can keep that money in two forms -
1. Cash
2. Fixed Deposits
 Fixed deposit is done only before the first bidding so it will have a period
of 3 closed bidding rounds.
 Fixed deposits have a variable interest rate.
 After first round, it is 10%, after second round, it is 20% & after third
round, it is 40%.
 If you do not break your fixed deposit in between any round of closed
bidding, then your fixed deposit with interest will automatically be added
into your cash after third closed bidding round.
 You can also break your fixed deposit into cash in between any round.
 But then the interest rate for that round will be decreased by 5% for that
particular round.

You have 20 mins to analyse all the 6 cost functions for the three rounds of closed
bidding.

Closed Bidding (Round 1) –

 Time period - 10 mins.

 Only first six commodities will be open to bid for this round.
 The commodity will be given to the second and third highest bidder of the
respective commodity.

 Cost function for the second highest bidder

J12 = (w/15) * (n)+ 2a + d³/3 + √(h² + s²) + (Bid 1st - Bid 3rd)/10

 Cost function for the third highest bidder

J13 = (w/15) * (n) + 2a + d³/3 + √(h² + s²) + (Bid 1st - Bid 2nd)/10

J1(if only single bid) = (w/15) + 2a + d³/3 + √(h² + s²)

J1(if only two bids) = (w/15) * (n) + 2a + d³/3 + √(h² + s²)

n=no. Of bids for that particular commodity.

Closed Bidding (Round 2) –

 Time period - 15 mins.

 All the 10 commodities will be open to bid for this round.
 In this round, the commodity will be given to the first highest and second
highest bidder of the commodity.
 There is an increase of 5% in the base price of the commodities which are
sold in the first round.

New Base Price = (Base Price) * 105/100

 The base price of the commodity remained unsold in the first round
remains same in this round.
 Cost function for the first highest bidder

J21 = (w∕10) *n + a² + 3d + √(s³h) + (Bid 1st - Bid 2nd)/10 + 5*c

n = No. of bids for this commodity

c = No. of commodities bought in last round

 Cost function for the second highest bidder

J22 = (w/10) *n + a² + 3d + √(s³h) + 5*c

J(only single bid)= (w∕10) *n + a² + 3d + √(s³h) +5*c

Trading (Round 1) -

 You all will be divided in a team of three or four people.

 Trade will be done between two teams.
 Time period - 15 mins.
 You can mutually trade among your group.
 An Incentive in the form of cash will be given to each team for the trade
done.
 Trade can be done in two ways -
1. Commodity/Commodities for Commodity/Commodities.
Incentive = 20% of the commodity with cheaper base price

2. Commodity/Commodities for Cash-in-hand.

Incentive = 20% of the Cash.
Closed Bidding (Round 3) -

 Time period - 30 mins

 There is an increase of 5% in the base price of the commodities which are
sold in the second round.

New Base Price = (Base Price) * 105/100

 In this round also, the commodity will be given to the first highest and the
second highest bidder.
 The Twist (Surprise)
 Cost function for the first highest bidder
J31 = √((w) * (n))+ h² + 3s + √(2a² + 2d²) + 5*c1 + 10*c2 + (Bid 1st - Bid
2nd)/10
c1 = No. of commodities purchased in Round 1.
c2 = No. of commodities purchased in second Round 2.

 Cost function for the second highest bidder

J32 = J31 - (Bid 1st - Bid 2nd)/10 - (Bid 2nd - Bid 3rd)/10

Trading (Round 2) -

 The previous trading rules still imply in this trading round with some
numerical percentage changes i.e incentive now is 8% only.
 Now THE PARTNERSHIP comes into picture.
 You will be grouped with another five teams and now you can do the
partnership with any one team only.
 This is how it works : For the next open bids of four commodities, you can
merge with one other team within the group according to your best profit.

Example -

 If Team A has Rs.20 and Team B has Rs.100, Team A thought they don’t
have a good margin in open bidding. So they merged with Team B making
a deal that in the coming Opening Bidding round when they play together
if they bought a commodity then Team B will give some share(on their
mutual understanding ) of the points to team A.
  If you want to break the partnership, you can break it with a depreciation
of 8% of trading amount.

Open Bidding -
 The five different commodities will be available for open bidding.
 After every 3 bids on a particular commodity, the base price of the
commodity gets increased by 20%.
 Points earned by Open Bidding =
(Base Price of the commodity bought)/5 .

Marking Scheme -

 The points calculated by the Cost function.

 Remaining money converted into points.
Points = (Remaining money/20) * (1+No. of goods bought by that team)
 Final Points = J1 + 2 * J2 + 1.5 * J3 + Open Bidding Points + Remaining
money Points.