Coke and Pepsi

3)Discuss choices in the rivalry where the two firms imitated each other in terms of VERTICAL CO-ORDINATION.Make sure to address

a)Is this imitation strategy a cost-cutting strategy or revenue increasing strategy?

b)Defend the firms' strategy with economic principles

c)Explain why the firms' chose (or were forced) to imitate their rival's strategy

4)Discuss VERTICAL choices in the Cola War where the two firms deviated in strategy (i.e. didn't imitate the other).Make sure to address

a)Is this imitation strategy a cost-cutting strategy or revenue increasing strategy?

b)Defend the firms' strategy with economic principles

c)Explain why the firms' chose (or were forced) to imitate their rival's strategy

5 ) Use repeated interactions in game theoretical context to explain what's going on between the two firms (note: it is important to understand global market developments), specifically how are they able to sustain such high profits for such a prolonged period of time.