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Institute of Business and Economic Research
Competition Policy Center
University of California, Berkeley
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Estimating Coke and Pepsi's Price and Advertising Strategies
Amos Golan, American University
Larry S. Karp, University of California, Berkeley, and Giannini Foundation
Jeffrey M. Perloff, University of California, Berkeley, and Giannini Foundation

The final version of this article appears in the following publication: Journal of Business & Economic Statistics, 18(4), October 2000: 398-409

Download the Paper (286 K, PDF file) - July 1, 1998 Tell a colleague about it.
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ABSTRACT:
A semi-parametric, information-based estimator is used to estimate strategies in prices and advertising for Coca-Cola and Pepsi-Cola. Separate strategies for each firm are estimated with and without restrictions from game theory. These information/entropy estimators are consistent, are efficient, and do not require distributional assumptions. These estimates are used to test theories about the strategies of firms and to see how changes in incomes or factor prices affect these strategies.

SUGGESTED CITATION:
Amos Golan, Larry S. Karp, and Jeffrey M. Perloff, "Estimating Coke and Pepsi's Price and Advertising Strategies" (July 1, 1998). Competition Policy Center. Paper CPC99-004.
http://repositories.cdlib.org/iber/cpc/CPC99-004

 
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