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Taco Bell and Taco John's are two competing fast - food restaurant chains which serve Mexican inspired food at low prices. Many restaurants have holiday

Taco Bell and Taco John's are two competing fast-food restaurant chains which serve Mexican inspired food at low prices. Many restaurants have holiday inspired menu items such as the Nachos Navidad at Taco John's.
Suppose two restaurants similar to Taco Bell and Taco Johns are considering the addition of a holiday menu item. Restaurant 1 is considering a holiday inspired burrito while Restaurant 2 is considering a holiday inspired quesadilla. If neither company releases either product, Restaurant 1 will earn their typical $10 million in quarterly profits while Restaurant 2 will earn $9 million. If Restaurant 1 decides to release their burrito, they will spend an additional $3 million introducing the new product but gain $4 million in additional revenue while Restaurant 2's revenue will be lower by $1 million. If Restaurant 2 decides to release their quesadilla, they will spend $3 million introducing the new product but gain $4 million in revenue while Restaurant 1's revenue will be lower by $1 million. If both firms release a holiday product, they will each spend $3 million but will only gain $1 million in revenue each. All relevant values are gathered in the table below.

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