Coke, Pepsi and the new front in the cola wars The cola wars between Coca-Cola and PepsiCo may become even tougher as consumers seek out healthier alternatives to sugary soft drinks. But both Coke and Pepsi are getting higher prices for soda, thanks to new 8-ounce cans replacing the standard 12-ounce size.

With two strategies—8-ounce can and 12-ounce can—and with assumed payoffs, create a payoff matrix for the game if the equilibrium outcome is for both firms to choose 8-ounce cans.