Model this situation as a prisoner’s dilemma in which the players are Company A and Company B, and the strategies are to keep th
e quota and break the quota. Suppose that if both companies keep the quota, then each receives a payoff of $100, and if both break the quota, then each receives a payoff of $0. On the other hand, if one company breaks the quota and the other keeps the quota, then the company that breaks the quota receives a payoff of $150, and the company that keeps the quota receives a payoff of -$50.
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