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There are two undeveloped lots remaining in a small city. The lot owners are considering whether to develop each lot for commercial or residential use

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There are two undeveloped lots remaining in a small city. The lot owners are considering whether to develop each lot for commercial or residential use (city zoning would permit either use). One lot is located on the east side of town, while the other lot is located on the west side. The lot owners' profits net of any additional costs are given in the matrix below; both owners have all of this information. West Side Lot Residential Commercial West: $2M profit West: $7M profit Residential East Side Lot East: $10M profit East: $7M profit West: $6M profit West: $3M profit Commercial East: $&M profit East: $6M profit

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