Problem
Wilma and Betty are contractors who are bidding for a job. The client will hire the contractor who submits the lower bid; if the bids are tied, he'll hire Wilma. The winning contractor will incur $900 in costs. The two contractors are allowed to submit bids of $1,000, $2,000, or $3,000. For the winner, profit equals the difference between the bid and cost; for the loser, profit is zero. Wilma and Betty submit their bids simultaneously. Draw a table representing this game, showing the players' strategies and payoffs. Are there any dominant, weakly dominated or dominated strategies? Can you solve this game by the iterative deletion of dominated strategies? Find the Nash equilibrium.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.