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@mekkaokereke

Right
Same issue though
When walking away gets you the Nazis, it is insane to take that option

There are research games that explore this, and "costly punishment". If A offers B an "insulting" bid, although getting something is better than nothing, many B players "punish" A by rejecting the bid. That actually makes sense IF (1) there will be more rounds with A, and more importantly, the stakes are low. Neither are true here

MANY people will die or be immiserated now

@jeromio