The Game Theory Behind Starbucks' Big Coffee Price Cut

Photograph by Dhiraj Singh/Bloomberg

Good news for the caffeinated masses: Starbucks is cutting prices, starting May 10, on its bags of coffee sold in grocery stores. The $1-per-bag discount represents a 10 percent discount on its eponymous beans, a 12.5 percent drop on its cheaper Seattle’s Best brand.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.