As the text points out, threatening an enemy with "big sticks" doesn't deter war. Yet arms spending continues. This fact is partly explained by the laboratory observation that

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The laboratory observation mentioned in the text suggests that unconditional cooperation (e.g., disarmament) often gets exploited, which could be a factor contributing to why arms spending continues despite its ineffectiveness in deterring war.

As the Text Points Out, Threatening an Enemy with "Big