BB charges $3.00BB: $65
CC: $105BB: $80
Task 1: Does Books and Beans (BB) have a dominant pricing strategy? If so, what is its dominant strategy?
Task 2: Does Campus Coffee (CC) have a dominant pricing strategy? If so, what is its dominant strategy?
Task 3: Identify any Nash equilibriums in this pricing game. Hint: It is considered good form to denote outcomes by the strategy combination that gets you there, not by the resulting payoffs.
Task 4: Could the two firms do better than the Nash equilibrium by colluding and choosing another strategy?