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Now assume that Japan is not certain that the United States will behave rationally. In particular, Japan is concerned that the U. S. politicians may want to penalize Japan even if that does not maximize U. S. welfare. How might this affect Japan's strategy? How might this affect the equilibrium? If Japan is concerned that the U. S. might want to penalize it even if irrational, then Japan
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Now assume that Japan is not certain that the United States will behave rationally. In particular, J...
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