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    The claim conflates individual rationality with strategic... — Carmelics
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    Challenges→A threatener who accepts short-term loss to punish defection gains long-run credibility, making the threat genuinely rational to carry out.

    The claim conflates individual rationality with strategic rationality: a single costly punishment may be rational *ex post* while remaining irrational *ex ante* given uncertainty about future interactions.

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    Key Terms

    Costly punishment(as used in behavioral economics)
    When someone punishes another person even though it costs them something and doesn't benefit them directly, like spending your own money to fine someone who wronged you.
    Ex post(as a Latin phrase)
    Latin phrase meaning 'after the fact'—looking at something after it has already happened, rather than before.
    ex ante(The temporal position from which necessity and proportionality judgments are typically made)
    Before the results of actions are known; prior to the outcome
    individual rationality(in decision-making and game theory)
    Making choices that are best for you personally, based on your own goals and what you know right now.
    strategic rationality(Rationality of trust)

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    A form of rationality that is end-directed, meaning one acts rationally when doing so serves one's goals or desired outcomes, independent of the truth of the underlying belief
    uncertainty about future interactions(in strategic decision-making)
    Not knowing for sure what will happen next or how other people will act toward you in the future.

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    A threatener who accepts short-term loss to punish defection gains long-run cred...

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    A threatener who accepts short-term loss to punish defection gains long-run cred...

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