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A Rake Too Far: Optimal Platform Pricing Strategy - Above the CrowdAbove the Crowd | By Bill Gurley

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A Rake Too Far: Optimal Platform Pricing Strategy - Above the CrowdAbove the Crowd | By Bill Gurley

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A Rake Too Far: Optimal Platform Pricing Strategy - Above the Crowd

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In a casino, the term “rake” refers to the commission that the house earns for operating a poker game. With each hand, a small percentage of the pot is scraped off by the dealer, which in essence becomes the “revenue” for the casino. While casinos use the term “rake,” a plethora of interesting word choices exist which all describe the same thing – keeping a little bit of the revenue for the company that is running the service. Examples include “commission,” “fee,” “toll,” “tax,” “vig” or “vigorish,” “juice,” “the take”, and “graft” (although this last one is typically associated with [...]

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https://abovethecrowd.com/2013/04/18/a-rake-too-far-optimal-platformpricing-strategy/

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Written by

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bgurley

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Est. reading time

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13 minutes

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