RolfAndreassen comments on Rationality Quotes September 2014 - Less Wrong
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-- Scott Lynch, "The Lies of Locke Lamora", page 150.
If I remember the book correctly, this part comes from a scene where Locke Lamora is attempting to pull a double con on the speaking character by both impersonating the merchant and a spy/internal security agent (Salvara) investigating the merchant. So while the don's character acts "rationally" here - he is doing so while being deceived because of his assumptions - showing the very same error again