Admittedly, given the technology those secret spy agencies have, the people making policy decisions in each country are in kind of a weird place: every country but their own has a thorough picture of what their citizens are doing, and can use that information strategically against them.
It seems like the only two real Nash equilibria here are the unilateral ban of foreign surveillance, or the unilateral grant of domestic surveillance. Otherwise we're in an "only the criminals have guns" situation that's the worst of both.
It seems like the only two real Nash equilibria here are the unilateral ban of foreign surveillance, or the unilateral grant of domestic surveillance. Otherwise we're in an "only the criminals have guns" situation that's the worst of both.