Estimating Coke's and Pepsi's price and advertising strategies

Authors
Golan, A Karp, LS Perloff, JM
Citation
A. Golan et al., Estimating Coke's and Pepsi's price and advertising strategies, J BUS ECON, 18(4), 2000, pp. 398-409
Citations number
34
Categorie Soggetti
Economics
Journal title
JOURNAL OF BUSINESS & ECONOMIC STATISTICS
ISSN journal
07350015 → ACNP
Volume
18
Issue
4
Year of publication
2000
Pages
398 - 409
Database
ISI
SICI code
0735-0015(200010)18:4<398:ECAPPA>2.0.ZU;2-V
Abstract
A semiparametric, information-based estimator is used to estimate strategie s in prices and advertising for Coca-Cola and Pepsi-Cola. Separate strategi es for each firm are estimated with and without restrictions from game theo ry. These information/entropy estimators are consistent and efficient. Thes e estimates are used to test theories about the strategies of firms and to see how changes in incomes or factor prices affect these strategies.