What are the 'Cola Wars'?

Answer 1

From my understanding, the Cola Wars are about 2 major Cola producers, which are Pepsi Co and Coca Cola. Both of these 2 companies are dominant sellers in the Cola industry, hence the term Cola Wars. The term Cola War, means that any attempt by one company to reduce price or increase market share, will motivate another company to do the same or at least to 'react'. You can see these in real life as well. Sometimes, Pepsi will introduce new bottle designs or venture into other area, like mineral waters, or sports drink. And Coca Cola will eventually also create new bottle designs and diversify into other areas. This term Cola Wars are most often studied in one topic in Economics, called Market Structure, where you study Oligopolistic Market Structures. ( this is what I studied when I was in college ). Hope this helps (cheong@bgymail.gd.cn)