khafra comments on Explicit and tacit rationality - Less Wrong
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Martial-Art-Of-Rationality-Wise, this reminds me of people in epistemically vicious arts who say that western boxers couldn't beat them "on the street," because they could just gouge their eyes, bite them, and kick them in the cojones. It turns out that, if a strategy is available to everyone, it gets exploited until it's no longer an overwhelming advantage.
Whether that's because everyone's increased their use of violence and deception, or because they've coordinated to lower the marginal effectiveness of an additional unit of violence, is immaterial. Either way, violence and deception aren't a $20 bill lying on the ground, waiting for someone to pick it up. That wouldn't be a nash equilibrium.