The application of survival analysis to create a revenue management scheme for a casino’s table games is illustrated. Although logic suggests that table games revenue can easily be increased by manipulating minimum wagers, the matter is complicated by the nature of games, which allow “partial sales” (i.e., any number of hands) but do not allow a bet of zero, and in which actual demand is censored (when people are waiting to play). Survival analysis accommodates the time-played parameter while recognizing an inherent issue with capacity constrained supply. Optimization is then achieved by using traditional revenue-management tools, as demonstrated using a simulated data set.
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