Two firms, ADM and Ajinomoto, must decide how much lysine to produce. The profits of the two firms are interdependent: each firm’s profit depends not only on its own decision but also on the other’s decision. Each row represents an action by ADM, each column, one by Ajinomoto. Both firms will be better off if they both choose the lower output, but it is in each firm’s individual interest to choose the higher output.