Posted inUS-China

US-China trade war stuck in a Prisoner’s Dilemma

As the US and China escalate their trade war through tit-for-tat tariffs, it is tempting to view the situation as irrational brinkmanship. However, beneath the surface, the pattern follows a familiar structure in economics, specifically the “Prisoner’s Dilemma” in game theory — albeit one complicated by geopolitics, national pride and the realities of domestic politics. […]

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