The Surprising Tale of the Mexican Soda Tax

The surprising impact of the Mexican soda tax demonstrated that consumer and supplier responses can be unpredictable.

How Less is More For Coke

Seeing at our reaction to small packaging like Coke mini, behavioral economists say we buy more of the “regular” amount if it is perceived as a social norm.

The Reason CBS Can Charge $5 Million for a Super Bowl Ad

Able to charge monopoly prices for Super Bowl ads, CBS is getting $5 million for a 30-second ad from firms that include Anheuser-Busch, Coca-Cola and Pepsi.

Berkeley’s Soda Tax Surprise

Because Berkeley’s sugary drink tax has had little impact on price, researchers suggest that lawmakers insufficiently considered elasticity and incidence.

What a Blind Taste Test Showed About Beer

Behavioral economic ideas show that product differentiation and consumer preference are more from branding than the taste of colas or beers.

Why We Should Look More Closely At the Size of Our Soda

The 6-ounce bottle of Coke was the king of soda when an upstart company called Pepsi-Cola sold a 12-ounce bottle for the same price. The year was 1934 and the price was 5 cents. Pepsi’s competitive strategy has been called brilliant because its biggest costs were advertising, bottling…

Is “MexiCoke” Making a Mistake?

In Nevada convenience store coolers, at Wal-Mart or Costco, people empty the shelves the minute the Mexican Coca-Cola arrives. Coke says the glass bottle is the reason. Coca-Cola drinkers say they prefer “MexiCoke” because it is made with sugar cane,…

Foreign Investment: Coca-Cola

How does a business return to a country that it left many decades ago? After a military coup in 1962, Coca-Cola reduced its presence in Myanmar (Burma)  and then was prohibited from returning when the US banned most foreign investment there. Now…

Developing a Soda Habit

Why do Brazilians drink Coca-Cola? Our story starts during 1990. Trying to cope with an 80% monthly inflation rate, Brazilian shoppers rushed to supermarkets early in the morning before higher price stickers replaced the old ones. In just one month,…

6 Drinks of Economic History

Combine “spirits,” beer, wine, coffee, tea and Coca-Cola and you get some interesting economic history. Spirits: In 1758, George Washington was elected to Virginia’s House of Burgesses. Some attribute his victory to entertaining his neighbors with 160 gallons of rum,…