The Tire Factory (TTF) is a regional automotive repair chain that provides quick service for simple repairs, such as oil changes, tire rotation, and other minor automotive maintenance services. They are considering entering into the body repair business. For this purpose, they are considering two potential body shops, Best Auto Body (BAB) and Reliable Body & Paint (RB&P). The two body shops have a similar reputation for quality. The Tire Factory is planning to earn profit by marking up the repair price it pays. Collision repair costs consist of labor and material, which are specific to each repair, and body shops make their profit by marking up those costs (so the customers pay two markups?one by the body shop and the second by TTF). The Tire Factory explained to the managers of the two body shops that it will sign an exclusive contract with the provider who agrees to charge the smallest mark-up, and invited them to propose either a 20% or a 30% mark-up. If both body shops propose the same-mark-up, the TTF will split the business between the two suppliers.

If one supplier wins the auction, this supplier will make a profit of 40 (thousand dollars), and the losing supplier gets zero. If ther

Let's represent this game in a normal form. Recall that it means to specify players, strategies available to each of them, and the payoffs corresponding to each combination of strategies. It is convenient to represent it in a form of a matrix, like I did in the slides. l have entered the players and the strategies into the table. Fill the values for the payoffs. The first value in each cell is for BAB, and the second value is for FlB&P. Enter just the number of thousands; for instance, if the payoff is 40 thousand dollars, enter 40. RB&P Bid 20% Bid 30% BAB Bid 20% [ I. ,[ l | Bid 30% Jl rl