Consider a simple example of a payoff matrix in the context of a trade dispute between two countries, Country A and Country B. In this scenario, both countries can either choose to impose tariffs (T) or not impose tariffs (N) on each other's exports. The payoffs that each country experiences are based on the chosen strategies and are presented below.

Country B Tariffs (T) No Tariffs (N) Tariffs (T) 10,10 15,5 Country A No Tariffs (N) 5,15 12,12