In the arms race between India and Pakistan,each country must decide whether to keep building up its own arsenal or to stop spending money on arms and try to reach peace with the other country.Both will benefit most if each stops building up armaments,but each country is worried that if it stops spending money on weapons,the other one will keep buying weapons and gain an advantage.This situation is a real-world example of the
A) reciprocal altruism principle.
B) prisoner's dilemma.
C) ultimatum game.
D) dictator game.
Correct Answer:
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