The actions of Coke and Pepsi detailed in the given article are an application of game theory, since both businesses have incomplete information regarding the other company’s intended course of action. As a result of the cola wars, bottlers were pressured to increase spending on marketing and promotion, new packaging and product, and allow for widespread retail discounting. There are different “battlefields” on which Coke and Pepsi compete, such as marketing, bottling decisions, formula, and alternative…
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