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.

		Dominoes
		Low	Medium	High
Pizza Hut	Low	$500,$500	$425,$750	$575, $700
Medium	$600,$400	$550,$600	$580, $580
	High	$450, $375	$400, $550	$550, $775

1. 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?

1. 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?

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

1. What role do property rights play in creating common property resources? Why are common property resources subject to market failure due to non-excludability?

1. Suppose there are two movie rental stores in town: Captain Video and Movie Mania. These movie rental firms face a choice between two advertising strategies: television (T) and radio (R). Captain Video will be the first firm to make a decision, and their decision will be based on the anticipated action of Movie Mania. A game tree is provided below:

\fCaptain Video T R. Movie Mania Movie Mania T R T R. $Boo, $600 $600, $750 $400, $400 $250, $450