If the chemical firm owns the lake, the right column does not change, the cells in the left column change from (15, 0) and (15, 25) to (25, -10) and (25, 15). Producing just 1 ton of pollution is the firm's dominant strategy. The beach will operate, and both enjoy joint profits of 40. If the beach owner owns the lake the cells change to the following: Upper left column becomes (5, 10) and (5, 35). The right column becomes (0, 20) and (0, 30). Producing 1 ton of pollution is a dominant strategy for the firm. The beach operates and they enjoy joint profits of 40. Without property rights, the dominant strategy for the chemical firm is to produce 2 tons of pollution and the beach to operate, for a joint profit of only 30.