PIZZA WARS

Suppose a town has two pizza places: Jim's and Jill's. Each of them begins an advertising campaign hoping to capture a greater share of the available pizza market. The advertising schemes peculiar to large cities are too expensive for Jim and Jill, so they decide to give away free pizza slices at the state fair. They both specialize in cheese pizza with and without pepperoni. Use the following information to set up your matrix:

*If Jill and Jim both give away pizza with pepperoni, Jim's sales will increase by \$100 a week and Jane's will decrease by \$100 a week.

*If Jill gives away pizza with pepperoni and Jim gives away pizza without, Joe will lose \$120 a week and Jill will increase her sales by \$120 a week.

*If Jill gives away pizza without pepperoni and Jim gives away pizza with pepperoni, Jill's sales will increase by \$150 a week and Jim's will decrease by \$150.

*If Jill gives away pizza without pepperoni and Jim does the same, Jill's sales will increase by \$200 a week, and Jim's will decrease by \$200 a week.

1) What is the best strategy for Jill?

2) What is the best strategy for Jim?

Explain why your strategies are the best.