Market Monopoly: a statutory framework

What follows is a work in progress, attempting to write rules for Monopoly to make the game more closely approximate contemporary markets and regulatory mechanics. It is hoped these rules can turn vanilla Monopoly into a more dynamic (and less monopolistic) game, while simultaneously serving as a tool to promote financial literacy. Feedback is, as always, appreciated.

Be it enacted as an addendum to the rules of Monopoly:

§ 1. Players.

(a) At the beginning of the game, each player receives one piece and $1,500 in cash.

(b) To remain in the game, each player’s piece must remain in the roll order.

§ 2. The Bank.

(a) The Bank retains all abilities and responsibilities afforded it in the original rules.

(b) The Bank holds out for sale its own notes for $500, paying $525 in 5 turns (1% yield/turn)

(c) The Bank will loan out amounts of $200, $250 payable in 10 turns (4.5% yield/turn). If the original funds were used to purchase an asset, defaulting on a Bank loan will force auction of those assets first.

§ 3. Corporations.

(a) Incorporation. A player may, on his turn, incorporate an entity by filing Articles of Incorporation with the Bank, along with a $50 registration fee.

(b) Articles of Incorporation.

(1) Default Provisions. Unless specified otherwise in the Articles:

(A) Dividends and capital calls shall be allocated to shareholders in proportion to their ownership interests.

(B) A newly-formed corporation will issue 100 shares of a single class of stock.

(1) General business activity. Corporations may:

(A) Issue (sell), redeem (buy), and split its own stock;

(B) Transact in property and negotiate contracts;

(2) Subsidiary formation. A corporation may place a new piece on the board by paying $500 to the bank. A subsidiary piece moves the same number of spaces as rolled during the parent corporation's turn. A subsidiary piece may buy property on which it lands but must pay twice the list price. The parent corporation remains liable for all debts incurred by subsidiaries as a result of landing on owned properties.

(d) Registered Investment Company.

(1) In general. A corporation may elect upon incorporation to become a Registered Investment Company (RIC). A RIC must pay a $800 registration fee but receives a 2.5% yield per turn on its cash balances.

(2) A RIC may not own real estate.

(e) Contribution of Players’ Pieces.

(1) Players may become a subsidiary of a corporation by contributing its piece thereto. Turn order is unaffected, but the corporation will be liable for all liabilities incurred by the piece. Moreover, subsidiary pieces landing on unowned properties may elect to purchase them but must pay twice the list price.

(2) Players may not contribute partial interests in their piece to any corporation.

§ 4. Partnerships.

(a) In general. A player may, on his turn, join in a partnership between himself and another player. Players may either be a General Partner or a Limited Partner in the partnership.

(1) General Partners.

(A) A GP’s piece retains full ability to purchase property on the board.

(B) Each GP is, however, jointly and severally liable for the liabilities incurred by all other partners.

(2) Limited Partners. Limited partners, upon joining a partnership, may decide one of two options for his piece:

(A) If a Limited Partner’s piece remains on the board, it must decline to purchase any unowned properties on which it lands. The Partnership may, however, assume an agreed-upon portion of the liabilities incurred by the Limited Partner. Limited Partners retain all other collective and transactional abilities.

(B) If a Limited Partner’s piece is taken off the board, that player is wholly merged into the partnership. The partnership assumes all, if any, of the Limited Partner’s outstanding liabilities.

§ 5. Ownership of Property.

(a) Generally. Players may own and exchange the following interests in property:

(1) Interests in real property.

(A) Fee simple absolute.

(B) Tenancy for a specified number of turns.

(D) Joint tenancy with right of survivorship

(2) Five Fundamental Financial Instruments.

(A) Equity: the shareholder is an adventurer in the corporate business; he takes the risk, and profits from success. The creditor, in compensation for not sharing the profits, is to be paid independently of the risk of success, and gets a right to dip into capital when the payment date arrives.

(B) Debt: an unqualified obligation to pay a sum certain at a reasonably close fixed maturity date along with a fixed percentage of interest payable regardless of the debtor’s income or lack thereof.

(D) Notional Principal Contracts: a contract that obligates one party to pay specified consideration in return for periodic payments computed by reference to the value of a specified index on a notional principal amount.

(E) Forward Contracts: a contract which entitles Purchaser to delivery of an asset from Seller some time in the future in exchange for payment.

(b) Developing land. To develop houses and hotels on properties of a color group, the entity seeking to develop them must own all constituent properties of that color.