Cyril de Catheu

Cyril de Catheu

Data Engineer

Podcasting Pearl #3: The curse of the Black Lotus.

Economics: nurturing bubble markets.

Magic The Gathering always lives in a bubble.
Cards can be sold for tens to hundreds of dollars.
Magic stakeholders have understood that this kind of bubble can burst.

They have:

  • analysed bubbles of the same type
  • implemented strategies to entertain the bubble:
    • print boosters depending on the market booster price, to make booster price constant
    • create a second, demand generating market: “pro-league”. In “pro-league”, only new cards can be played
    • market researche on what type of card design/features is liked
    • differentiate reeditions from old editions to avoid “sad investors”

Note:
This strategy is not specific to Magic. The “banlist” in Yu-Gi-Oh TCG is a good example of bubble entertainment.
Konami controls both offer and demand.

Actionable:
Building this kind of market is financially very interesting.
As a consumer, avoid these kinds of market at all costs.