I tried to assume that too but that doesn't seem to answer all the questions. The allocation of students to teams seems to be stable so presumably we have some sort of iterated PD going on. If you've betrayed your army in battle 4 then what happens between battle 4 and battle 5? Is there some sort of default assumption that everyone reverts back to being loyal?
ETA: There is now a third thread, so send new comments there.
Since the first thread has exceeded 500 comments, it seems time for a new one, with Eliezer's just-posted Chapter 33 & 34 to kick things off.
From previous post: