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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

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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 Levi Strauss the color chosen by its rival, as the profit matrix shows. White Black Violet Suppose the firms move sequentially, with Wrangler 50 150 200 moving first. White Levi Strauss engages in pre-play communication (cheap 50 100 150 talk). Levi Strauss tells Wrangler that it will match rangler Wrangler's color choice if Wrangler chooses black and 100 0 175 violet but that if Wrangler opts for white, Levi Strauss will Black choose Violet. 150 0 75 Why would Levi Strauss want Wrangler to believe this 75 100 0 claim? Violet Levi Strauss would want Wrangler to believe this claim so 200 175 O that Levi Strauss could receive a payoff of $ (Enter your response as a whole number.)

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