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"Same problem as in the cooperation-defection dilemma if you're not Lawful enough.  They wouldn't expect you to know correctly whether they'd lose face in front of you, and it wouldn't solve the problem of losing face in front of the other students."

Version: 2
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"Same problem as in the cooperation-defection dilemma if you're a Chaotic Neutral outsider.  They wouldn't be certain you would know correctly whether they'd lose face in front of you, and it wouldn't solve the problem of losing face in front of the other students."