Question 4 Bolivia and Peru share a common border and are im…
Question 4 Bolivia and Peru share a common border and are important trading partners. The countries are considering whether to impose tariffs on each other’s agricultural exports. The table below depicts the decision by each country to introduce or not introduce tariffs. Part (i): Refer to the game above. Identify the Nash Equilibrium of this game? Part (ii): TRUE or FALSE: Is the tariff-setting game presented in this question is an example of the Prisoner’s Dilemma? Why or why not?