Classic one. Where reporting the other always leads to lower punishment for you, so both do the same. Where the benefits of working together lead to the summatively best outcome together, but without enough information, the best action that can be done by the self is the most egoistically beneficial to the specific individual; thus, it is chosen. If both parties act this way, the net outcome is still not as good compared to the net-best one.
If one country wants to go back to cavemen times to undo over-evolution, the other countries would naturally win with better technology in war and economics, so since it is the same way for everyone else technology would probably never revert to fit old life again.
Anti-logic is both the savior and the problem - humans aren't always that rational and may be swayed by psychological factors or time and energy?