Need help for two questions.

NEWSPAPER ARTICLE: Burger wars weaken 2 leading food chains December 25, 2002 BY ALEX VEIGA - ASSOCIATED PRESS MIAMI -- When Richard Steinig opened his first of four south Florida Mcdonald's restaurants in the 1970s, the fight for burger chain supremacy could be summed up this simply: Which was tastier -- the Big Mac or Burger King's Whopper? Thirty years later, No. 1 Mcdonald's Corp. and No. 2 Burger King are still brawling. But profits are being sapped by discounts and menu duels, not to mention competition, a saturated market and changing tastes. "You can't make money selling a Big N' Tasty at $1," Steinig said. He was referring to the chain's biggest quarter-pound burger, which is supposed to sell for more than $2 but has been discounted since October. ... 1. From this article would you say that Mcdonald's and Burger King are colluding? Why (not)? 2. Create a game theory payoff matrix that illustrates a prisoner's dilemma for these two stores. Create (make-up) "profits per day" numbers below to illustrate... assume they each earn $0 when they both charge $1; they each earn $1000 per day if they both charge $2; and they can force negative profits on the other if they undercut them as well as make even more than $1000 by taking over market share. Replicate this matrix and fill it in: Payoff Matrix for selling Hamburgers BK Charges $1 BK Charges $2 McD Charges $1 BK: BK: McD: McD: McD Charges $2 BK: BK: McD: McD