In October, McDonald's had a "Monopoly" advertising program which mimicked the original treasured board game. When a customer bought certain products on the menu (for example, large fries), there would be two stickers on the food item that, if peeled, revealed monopoly properties. If a customer won some of the rarest monopoly pieces, there was a potential to win big prizes such as an Xbox or even money, in the value of a million dollars.
However, this article shows that although a million dollars may seem like a lot, over time, the amount paid to the winner is not a million dollars exactly. Since the reward is paid in annuity payments of $50,000 over twenty years, the resulting money is not as much as it seems. Say that the inflation rate is 3.5%. After taxes, and going by the $50,000 per year that McDonald’s pays its winners, the total value would be around $500,000. McDonald's organized this advertising program in the hopes that many people would not take the time to actually think out the economics of its money prizes, and understand the slim possibility of winning the game.
Would you play the monopoly game at McDonald's? Does the monopoly advertising motivate you as a consumer to spend your allowance at this fast food restaurant in the hopes of winning?
-Molly Cheng
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