Question: Two superpowers are involved in a nuclear arms race. As shown in the payoff table below, each can choose to continue to build its weapons

Two superpowers are involved in a nuclear arms race. As shown in the payoff table below, each can choose to continue to build its weapons stock or alternatively to stop the escalation. The entries show each country€™s payoff in terms of national security from their joint actions.
a. Determine the (Nash) equilibrium (or equilibria) of the game. Does the superpower competition constitute a prisoner€™s dilemma? Explain.
b. Does your answer to part (a) help explain the €œcooling€ of the arms race between the United States and the former Soviet Union over the last 20 years?Explain.

Superpower 2 Build Stop Superpower Build Stop 3, 4 5, -3 -2, 7 6, 8

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