The year is 1870, the location is the town of Silverton inColorado. There are two saloons in town: Red's Beard and Sadie'sWhite Garter. After years of cut-throat competition the two owners,Red and Sadie, decide to cooperate in order to make more money.They have been making $400 per month each by competing fair andsquare. They decide if they each raise prices and limit the numberof beers served, they will earn $1,000 per month each. However ifone limits the number of beers and raises prices and the other doesnot, then they will earn only $200 per month while their competitorwill earn $1,500 per month. Not knowing what to do, they turn toyou, the prospecting game theorist, to help them figure out what todo.

Fill in the following table with the payoffs they can expect.Enter as follows: (Red's payoff, Sadie's payoff). Enter wholenumbers - no commas.

		Sadie's
		Raise Prices	Do Not Raise Prices
Red's	Raise Prices	(                           [Select ]                      [\"400\", \"1,000\", \"1,500\",\"200\"]         ,                          [ Select ]                     [\"1,500\", \"1,000\", \"200\", \"400\"]        )	(                           [Select ]                      [\"400\", \"1,500\", \"1,000\",\"200\"]         ,                          [ Select ]                     [\"200\", \"1,500\", \"400\", \"1,000\"]        )
	Do Not Raise Prices	(                           [Select ]                      [\"1,500\", \"200\", \"1,000\",\"400\"]         ,                          [ Select ]                     [\"1,000\", \"400\", \"200\", \"1,500\"]        )	(                           [Select ]                      [\"400\", \"1,000\", \"1,500\",\"200\"]         ,                          [ Select ]                     [\"1,500\", \"400\", \"1,000\", \"200\"]        )

Based on the payoffs, what is the likely outcome of the game?Explain

both of them raises prices

both of them do not raise prices

sadie does but red does not

red does but sadie does not raise prices