The Classic Casino Problem
Consider the classic case of a casino with separate food service and gaming divisions. The food service managers may be clearly identified with a broad range of food service activities including sales, operations, and administration. Those activities may objectively yield revenues and incur costs.
 | Collateral benefits  Collateral Costs  |  |
However, free drinks that create losses for the food service unit may bring in highly profitable customers for the gaming unit, where fat margins more than make up for food service losses.
In this case, neither the food service division nor the gaming division would constitute viable EP centers since free drinks produces collateral benefits for gaming, and more people in the casino creates collateral costs for the bar.
