1. When McDonald's Corp. reduced the price of its Big Mac by 75 percent if customers also purchased french fries and a soft drink, The Wall Street Journal reported that the company was hoping the novel promotion would revive its U.S. sales growth. It didn't. Within two weeks sales had fallen. Using your knowledge of game theory, what do you think disrupted McDonald's plans?

2. Price discrimination sounds like a socially "bad" thing. Can you think of any reasons why price discrimination could be viewed as a socially "good" thing?