1. Case Study 1 has a serious problem: it assume that both of the two players get a payoff of zero from the status quo of no conflict. However, during the latter part of the Cold War it was already apparent that the USSR was struggling to keep up with the USA and western countries. Many people internal to the USSR and in the USA already projected that if the status quo were to continue, that the USSR would eventual \"lose\" the Cold war. (a) (5 points) Consider the preceeding story. Suggest how you could modify our second model from Case Study 1 to capture this new strategic issue. In your answer, provide the specific changes you would make to the model, and justify your choices with reference to both the real-world situation, and the theory of strategic games. 1 (b) (5 points) If you haven't already, draw the game matrix associated with your changes in (a). Find all of the NE in this new game, and the conditions on B to avoid a nuclear conflict. Show your work. (c) (5 points) Is nuclear conflict more or less likely in your new model? The same? Explain why. Make sure you refer to the strategic analysis and the economics of this situation in your