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MBlume comments on Selecting Rationalist Groups - Less Wrong
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The trouble with the scoring as described is that it is not zero sum, and, as far as I can tell, constitutes a prisoner's dilemma. That is, if you would cooperate on the one-shot PD, you should also completely ignore a red card handed you. This can be remedied by giving the red card -3 times the score of the group.
ETA: I suppose this PD-equivalence collapses if one player believes themself to be significantly more effective than the other three (or if anyone believes anyone believes this etc. etc.)
The downside is that your observation messes up the game a bit. The upside is that your observation means that in "really real" situations, rationalists would be even less likely to try to deceive each other. :)