In a traditional arms race the payoff matrix may look someth

In a traditional arms race, the payoff matrix may look something like this:

Assume that the costs of cooperation can be changed through international agreements or norms that change the payoff matrix as follows.

What effect would such a change have on the likelihood of states to engage in arms races? Why? How might the payoff matrix be modified to result in this outcome?

Solution

In first matrix best option is do not arm and do not arm but this was not giving greatest advantage to both parties. Hence, two parties could be expected to use arms. In second matrix best option for both the parties is not to use arms as it is giving them best results.

It can be done by enhancing trade relations, ports relations and human capital relations with countries which maintain peace and not using arm policies for long.