Soft-drink companies pay universities for the exclusive pouring rights to sell their products on campus. In a
Question:
Soft-drink companies pay universities for the exclusive
“pouring rights” to sell their products on campus. In a recent deal, UCLA signed a contract with Pepsi for
$1.5 million per year limiting on-campus soft-drink sales to only Pepsi.
a. Why would Pepsi agree to pay such a fee?
b. What would likely happen if there were no pouring rights on campus?
c. Is the sale of pouring rights beneficial to students or harmful to them?
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a Pepsi agrees to pay such a fee for pouring rights because it gains exclusive access to a captive m...View the full answer
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