How does Yegge's prototype pattern example handle instance variables?

function Dragon()
{
    this.position = "starting point";
}

function AwesomeDragon()
{
    this.awesome = true;
}
AwesomeDragon.prototype = new Dragon();

function AwesomeDragonImmuneToFire()
{
    this.immuneToFire = true;
}
AwesomeDragonImmuneToFire.prototype = new AwesomeDragon();

>>> var awesome = new AwesomeDragon();
>>> var immune = new AwesomeDragonImmuneToFire();
>>> awesome.position = "flying above village";
>>> immune.position;
"starting point"
>>> immune.awesome
true