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Thus, the USGA decided to impose regulations on new club technology. They capped the allowable coefficient of restitution at 0 . 8 3 ; this

Thus, the USGA decided to impose regulations on new club technology. They capped the allowable coefficient of
restitution at 0.83; this coefficient measured the ratio of incoming to outgoing velocity. This restriction was
intended to prevent the ball from jumping off the club the way that it tended to do for the Big Bertha and other
comparable products. What is your evaluation of the changes taking place in the golf club industry? What
would you predict might occur to profits in this industry moving forward? (Source: John Gamble, Competition in
the Golf Equipment Industry in 2005.)

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