Two chemical companies, Proton and Neutron, have been accused by the

Environmental Protection Agency of leaking chemical wastes into a nearby stream.

Each company is trying to decide whether to admit guilt or whether to fight the accusation in court. The (negative) payoffs (fines and/or court costs in millions) are as follows:

Proton

Admit Guilt Fight Accusation

Neutron Admit \ $-5 \ $-6

Guilt $-5 \ $-1 \

Fight \ $-4 \ $-2

Accusation $-6 \ $-2 \

1. Is there a Nash Equilibrium?
2. Is this "game" an example of the Prisoner's Dilemma?