Abdullah Konak
Penn State Berks
konak at psu.edu

1. Divide class into 2 groups (2 restaurants),each with 4 possible menus.
2. Provide 4 x 4 game matrix showing effects.
3. Groups choose which menu is best,without knowing other group’s choice.

Student Handout A

Two competing restaurants are going to start a new value menu. There are 4 options for each company. The success of a menu depends on the menu of the competitor. If A chooses A1 and B chooses B1, then A makes $4 million. On the other hand, if A chooses A1 and B chooses B2, then A will lose $4 million. As A, which value menu would you choose?

Student Handout B

Two competing restaurants are going to start a new value menu. There are 4 options for each company. The success of a menu depends on the menu of the competitor. If B chooses B1 and A chooses A1, B will lose $4 million. On the other hand, if B chooses B1 and A chooses A2, then B will make $3 million. As B, which value menu would you choose?