How is the market power of coca- cola affected by what is


In 2010, the U.S. Federal Trade Commission was involved in a case against Coca-Cola acquiring one of its largest bottler/distributors, which also distributed Dr. Pepper, because the former was considered to control too large a share of the cola market. The FTC’s case hinge don defining the market for Coca-Cola. Define the market for Coca- Cola, that is, what other goods would you include in the market for Coca-Cola as competitors? Considering the market for Coca-Cola, how is the market power of Coca- Cola affected by what is included as a part of the market? How would you want the market to be defined if you were a lawyer for Coca-Cola in this lawsuit (broadly or narrowly)? Explain.

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