Twelfth grade economics students participated in a demonstration to compare market structures. Christopher Walker taste tested Coke and Pepsi to see if he could tell the difference between these oligopolistic competitors who dominate the cola market. Kristasia Harkins taste tested a generic and name brand salt, which are perfect competitors. Students were able to conclude that Coke and Pepsi have a different taste, and hence consumers may be willing to pay a higher price for their preferred cola. In contrast, salt is the identical compound, sodium chloride, hence as smart consumers we should never buy name brand salt because we are only paying for the advertising costs of the name brand. There is no real difference in taste; it is just a perception based on advertising. Students enjoy learning how economic concepts can be applied to real-life decision making.
