ECON 1108 Chapter Notes - Chapter 4: 7 Up, Carbonated Water, Gerhard Gesell
Document Summary
February 20, 1986 coca cola announced intentions to purchase dr pepper company and merge operations. 3 weeks earlier pepsico announced intentions to purchase 7up company, which was a subsidiary of the philip morris corporation. These 2 mergers would have meant consolidation of the 1st and 4th and the 2nd and third largest sellers of concentrate for carbonated drinks in the us. This case is important in 2 respects. Antitrust challenge to a major merger at a time when critics of the reagan administration"s antitrust enforcement agencies were claiming that these agencies had largely abandoned enforcement. Case in which sophisticated economic reasoning shaped and influenced the structure of many of the arguments advanced by both sides, as well as much of the trial opinion written by the judge in this case. These 4 brands usually identified as producers of carbonated soft drinks, or csd.
