How so?  It's super simple to make your own soda. You could start a  
company doing it for under 100k$.  There are lots of microbrews which  
follow this same concept and are able to profitably compete against  
Bud and Coors.

On Sep 2, 2008, at 12:13 PM, kirk wrote:

>
> Joshua Marinacci wrote:
>> But why is this the case?  There are plenty of essentially  
>> 'commodity'
>> products that have monopolistic competition and don't eventually
>> collapse to 0% margin.  Coke and Pepsi sell for many many times the
>> price that pure costs would suggest.
>
> Coke and Pepsi have put up significant cost barrier for entry into the
> market that is based on branding. If they didn't or if that economic
> principle wasn't sound, life would be completely different.
>
> Regards,
> Kirk
>
> >


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