Describe the strategies in the game that Coca-Cola and PepsiCo play. With some assumed payoffs, create a payoff matrix for the game and find the equilibrium outcome.

What’s your soft drink of choice? Soft drink sales have fallen for six straight years as consumers switched to healthier alternatives such as juices and cut back on spending in the recession. The two rivals have moved into bottled water, fruit juices, energy drinks, and sports drinks to try to maintain market share. Both companies saw decreased sales, but Pepsi had the greater loss. Overall, Coke product sales were down 0.5 percent while Pepsi saw a 2.6 percent decline.