Question: Problem 2. (24 points, each part is weighted equally, circle your nal answer to each part) Two street vendors, Allen Snacks and Beaver Pizza are

 Problem 2. (24 points, each part is weighted equally, circle your

Problem 2. (24 points, each part is weighted equally, circle your nal answer to each part) Two street vendors, Allen Snacks and Beaver Pizza are selling slices of pizza in State College. City regulations require they post their price on their food card before setting up, and cannot change prices during the day. Therefore, neither learns the other's price before deciding on their own price. The city further requires that the choose one of only three prices $1, $2, or $3. State College has 100 potential pizza buyers. However 20 of them will only buy a pizza if it costs less than $2.50. All pizza buyers will purchase pizza from the lowprice provider. If Allen and Beaver set the same price, sales are split evenly. The rm's cost of producing pizza is zero, both rms wish to maximize prots. 1. What is the Strategy Set for Allen Snacks? 2. Draw the normal form for this game. Be sure to fully label your picture to receive full credit. 3. List the dominated strategies of Beaver Pizza in this game. 4. List all Nash Equilibria of this game

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