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pdimitartoday at 12:07 AM2 repliesview on HN

Realistic and historically accurate:

Pepsi starts collecting the extra profits with zero price reductions.


Replies

fc417fc802today at 1:07 AM

In a duopoly, probably yes. However in a more competitive environment where several incumbents have achieved a given optimization a race to the bottom is likely to occur because it only takes one of them preferring to increase their relative market share to kick the process off.

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SoftTalkertoday at 1:15 AM

sacrificing even more profits that may be had by undercutting coca-cola's price? The CEO would be fired.

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