http://gametheory101.com/courses/international-relations-101/
Weapons are expensive to build but provide benefits if one state builds more weapons vis-a-vis its rival. Thus, the prisoner's dilemma describes an arms race: both sides prefer not building weapons to building weapons collectively, but individually each side is better of building regardless of what the other does.
As with the previous lecture on tariffs, you might notice that there have been plenty of successful arms treaties over the decades. We will begin explaining why cooperation can succeed in the face of a prisoner's dilemma in the next video.
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