Graduated Escalation
Only 3% of fountain accounts reached price war stage.
82% of intrusions deterred at cheapest level (2 calories). The escalation ladder minimizes average defense cost while maintaining maximum deterrence.
When boundaries fail and intruders enter, territorial animals don't immediately fight to death. They use graduated escalation - matching response intensity to intrusion severity. Red deer stag escalation ladder (Clutton-Brock, 40-year study): Level 1 Visual assessment (82% of intrusions end here) - roaring display, 2 calories, 10 seconds. Level 2 Parallel walk (13% proceed) - visual comparison, 15 calories, 3 minutes. Level 3 Antler clash (5% escalate) - test of strength, 150 calories, 15 minutes. Level 4 Full combat (1% reach) - all-out battle, 2,000+ calories, 30+ minutes, 40% injury risk.
The deterrence pyramid: Each stage filters out progressively more-capable intruders. Only truly competitive rivals reach lethal combat. The system minimizes average defensive cost while maintaining maximum deterrence.
Business Application of Graduated Escalation
Coca-Cola's fountain defense followed identical structure: Account visibility (territory marked) → Relationship incentives (parallel walk) → Exclusive contracts (antler clash) → Price wars (full combat). Only 3% of fountain accounts reached price war stage. The escalation ladder deterred 97% through cheaper earlier stages, keeping total defensive costs at sustainable 22-23% of territory value.