The concepts of: "price discrimination," also "barriers to entry" to Elucidate the current success of Harrah's strategy
1. Suppose which the governmental authorities wished to decrease use of a pesticide which is leaching into groundwater supplies in a watershed by 60% from current use levels. Discuss the advantages also/or disadvantages of distributing marketplace able pesticide permits to every farm operating in the watershed equal to 40% of its current level of use of which pesticide, versus simply ordering every farm to reduce pesticide use to 40% of current levels under threat of heavy fines for non-compliance
2. Discuss the following excerpt from a recent story in the Wall Street Journal (May 4, p.1). In your discussion demonstrate which you can use the concepts of: "price discrimination," also "barriers to entry" to Elucidate the current success of Harrah's strategy also the prospects for continued success with the strategy.
TUNICA, Miss. -- She doesn't know it, but Linda Maranees is the subject of a behavioural experiment which could change the odds of the gambling business. The Memphis, Tenn., retiree, her blouse bedecked with sequined cards also dice, has just received invitations to two nearby slot tournaments, along with vouchers for $200, all courtesy of Harrah's Entertainment Inc.
"Harrah's is savvy," says Ms. Maranees, who admits which once in the casino door, she is bound to spend much more than illustrate what Harrah's has given her. Which is exactly Illustrate what the Las Vegas-based company is banking on? Over the past two yrs, Harrah's has quietly conducted thousand of clinical-style trials to determine Illustrate what gets people to gamble more. Based on its findings, Harrah's has developed closely guarded marketplace trategies tailored individually to the millions of low-rollers who make up its bread-also-butter business.
The results are impressive enough which other casino companies are copying some of Harrah's more discernible methods.
At the centre of Harrah's strategy is a former Harvard professor named Gary Loveman also a vast mathematical model much like the ones which airlines use to fill seats with the highest-paying fliers? But this one scores gamblers on explain how profitable they can be to Harrah's. Richard Mirman, the company senior vice president who refined the model, boasts which it is Harrah's "secret recipe" -- on a par with the famous unrevealed formula of Kentucky Fried Chicken. The model tells Harrah's marketplace explain how to appeal to gamblers such as Ms. Maranees, based on data tracking their previous behaviour in casinos. Spitting out "behaviour modification reports," Harrah's computers suggest which Ms. Maranees -- an avid slot-tournament player -- will respond best to a cash offer, while Tina Montgomery, a real-estate agent from nearby Oxford, Miss., is better motivated by a free hotel room. As Ms. Montgomery gambles downstairs, she elucidates, "My husband stays in the room."