In the sequential- move game described in part b of the previous question, Levi Strauss engages in

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In the sequential- move game described in part b of the previous question, Levi Strauss engages in pre- play communication ( cheap talk). Levi Strauss tells Wrangler that it will match Wrangler’s color choice if Wrangler chooses black and violet, but that if Wrangler opts for white, Levi Strauss will choose violet. Why would Levi Strauss want Wrangler to believe this claim? Should Wrangler believe it?

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Managerial Economics and Strategy

ISBN: 978-0321566447

1st edition

Authors: Jeffrey M. Perloff, James A. Brander

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