That in a nutshell is the strategy adopted by the establishments in Las Vegas. Fighting vigorously amongst themselves, Vegas heavyweights would have very easily carved the paths for their respective bankruptcies, but together, they have developed the power to win the world!
Interoperability in transportation, bill payments, connectivity and free movement with the same exclusivity like pool, spa etc. for the guests of the hotel, casino fraud protection and shows coordination. All these together has made a strip in the middle of nowhere the most happening and entertaining place on the earth. Guided by a mutual understanding (and keeping antitrust on the bay), the hotels at Vegas are also priced almost equally led by the star ratings.
It will be stupid to think that the establishments in Vegas don’t compete. They of course do and do it well to make sure they serve the customers well, people spend the most at their casinos and clubs and are attracted again and again to their hotels. But the competition is on the service factor and not just price point, it’s to attract their niche genre, and not everyone and it’s more often than not to out do oneself than beating down someone else.
The basic point to understand is that there are a lot of things to compete on instead of competing on price of the product or service. Similar strategic understanding can be seen when you look at a number of other industries around us like soft drink giants Coke and Pepsi (in consumer market) and mobile operators. Companies in all these industries have realized that the best way to win is by enlarging the size of the pie and letting everyone have a share of it rather than fight for a small pie and cut each others’ throat to collectively lose.