Question:

1. Give a real life example of prisoners’ dilemma. Explain in details how your example portraits "prisoners’ dilemma", who are the "players", what their strategies are, and why they chose strategies that may not be the most beneficial to both of them.
2. Each year the United States considers renewal of Most Favored Nation (MFN) trading status with Farland). The payoff table below shows the potential economic gains associated with a game in which Farland may impose trade sanctions against U.S. firms and the United States may not renew MFN status with Farland. The table contains the dollar value of all trade-flow benefits to the United States and Farland.

If Farland decides to impose sanctions, then US can chose not to renew and make a profit of ____

If Farland decides to impose sanctions, then US can chose to renew and make a profit of ____

Given this, the best move for US is to __________________

If Farland decides to not impose sanctions, then US can chose not to renew and make a profit of ____

If Farland decides to not impose sanctions, then US can chose to renew and make a profit of ____

Given this, the best move for US is to _____________________

IF US decides not to renew MFN, then Farland can decide to impose sanctions and make a profit of _________

IF US decides not to renew MFN, then Farland can decide to not impose sanctions and make a profit of _________

Given this, the best move for Farland is to _________________

IF US decides to renew MFN, then Farland can decide to impose sanctions and make a profit of _________

IF US decides to renew MFN, then Farland can decide to not impose sanctions and make a profit of _________

Given this, the best move for Farland is to _________________

Price: $2.99

Solution: The downloadable solution consists of 3 pages
Deliverable: Word Document