Finance is hardly the most riveting topic, especially compared to video games. But, if you want to run an effective studio, you need to understand it. The implication of financial theory don’t just apply to your bank account. It should impact the calculus behind any strategic decisions. In this post, I talk about the “Law of One Price” and why it should give you pause before trying to imitate a successful game’s design. There’s No Such Thing as a Free Lunch: The Law of One Price I took three quarters of graduate-level finance when I was working through my MBA. The textbook for the classes was a massive tome called, appropriately enough, Corporate Finance, by Jonathan Berk and Peter DeMarzo. Not exactly a page turner. But one of the authors’ central tenants in the book is what they dubbed “the Law of One Price”: If equivalent investment opportunities trade simultaneously … Continue reading The Law of One Price – A Business School Mini-Lesson