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The leaders of two countries (A and B) are angry at each other over an international misunderstanding. The leaders can decide whether or not to
The leaders of two countries (A and B) are angry at each other over an international misunderstanding. The leaders can decide whether or not to bomb the capital of the other country. Their payoffs are given by the following payoff matrix. Country A's options are on the rows, and Country B's are on the columns. What is the Nash Equilibrium outcome for this game? Assume the countries refuse to talk to each other.
Do not bomb; Do not bomb
Bomb; Bomb
Do not bomb; Bomb
Bomb; Do not bomb
There is no Nash Equilibrium.
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