In the game described in Question 2.4, a new CEO takes over at Wrangler. It is common knowledge that this CEO hates the color violet and would never produce violet jeans. You can therefore remove the third row from the profit matrix. How do your answers to Question 2.4 change?

Question 2.4

Levi Strauss and Wrangler are planning new-­generation jeans and must decide on the colors for their products. The possible colors are white, black, and violet. The payoff to each firm depends on the color it chooses and the color chosen by its rival, as the profit matrix shows: 

Transcribed Image Text:

Levi Strauss White Black Violet 10 30 40 White 10 30 20 35 Wrangler Black 30 15 15 20 Violet 40 35 20