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cousin_it comments on Thomas C. Schelling's "Strategy of Conflict" - Less Wrong
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If it's common knowledge that both have read Schelling's book, the game is isomorphic to Chicken, which has been extensively studied.
so rationality doesn't always mean "win-win" ? In a chicken situation, the best thing for "both" the persons is to remain alive, which can be done by one of them (or both) "swerving", right? There is a good chance that one of them is called chicken.
Neither actual human rationality nor its best available game-theoretic formalizations (today) necessarily lead to win-win.
Indeed, the difference between Winning and "win-win" is important. Rationality wouldn't be much of a martial art if we limited the acceptable results to those in which all parties win.