Table 16.7
The USA and China are locked in negotiations to cut emissions.The following table represents the pay-offs from cutting emissions and continuing to pollute:

-Refer to Table 16-7.The Nash equilibrium for this game is for:

Question

Table 16.7
The USA and China are locked in negotiations to cut emissions.The following table represents the pay-offs from cutting emissions and continuing to pollute:
 
-Refer to Table 16-7.The Nash equilibrium for this game is for:

Quizplus · Accepted Answer

In a Nash equilibrium, each player's strategy is optimal given the other player's strategy. Here, if one country cuts emissions while the other pollutes, the one that cuts emissions is worse off. Thus, both choosing to pollute is the Nash equilibrium, as neither country has an incentive to unilaterally cut emissions.

Table 16.7 The USA and China Are Locked in Negotiations to Cut