The United States claims that Canada subsidizes the production of softhwood lumb

Question

The United States claims that Canada subsidizes the production of softhwood lumber and that imports of Canadan sothwood lumber damage the nnerests of U.S producers Canada's strategies red squares) Dont The United States has imposed a high taniff on Canadian impots to counter the subsidy Canada is thinking of retailating by nefusing to export water to Calfomis The table shows a payott mattor the game are playing the United States and Cna This game is identical to the prisoners dlemma OA. True y would benele more hom a free trade agreemnt The Unted Ste 6 9

Explanation / Answer

This is not Prisoner Dilemma Kind game because in Prisoneer dilemma both the players mutually choose strategy that pays lower payoffs to each of them but in our given game US is better off when Nash Equilibrium is considered here and that is (Tariff,Export)

Hence we can say that US is always better off from free trade agreement

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