Question: (1) The payoff table below demonstrates a pricing decision game between two pizza providers in town. Each pizza provider is faced with a decision to

(1)

The payoff table below demonstrates a pricing decision game between two pizza providers in town. Each pizza provider is faced with a decision to price their product in a high, medium, or low price category.

(1) The payoff table below demonstrates a pricing decision game between two

a) Does Pizza Hut have a dominated strategy in the original payoff table? If so, what is it and why is it dominated? If not, why not?

b) Does Dominoes have a dominated strategy in the original payoff table? If so, what is it and why is it dominated? If not, why not?

c) What is the resulting dominant strategy equilibrium of this pricing decision problem? Please explain the decision making process of each firm.

Dominoes Dominoes

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