Thank you for the comments. Another effective way to examine these issues is to categorize them into two scenarios.
For Proposers N
and N+1
:
- If
N
andN+1
are on the same team and are profit-maximizers, then the proposerN
will include the maximum profit IL. - If
N
andN+1
are antagonistic,N
may construct an IL to sabotageN+1
, making it difficult or impossible forN+1
to include it or forcing them to drop the block. Some argue this is a feature, not a bug. - If
N
andN+1
are unfamiliar with each other, the situation remains as it was before.
For Proposers N
and N+2
:
- If
N
andN+2
are on the same team and are profit-maximizers,N
might create an IL designed to knock outN+1
, allowingN+2
to seize the profit originally intended forN+1
.
I think the default client setting is a significant factor here. Altering the stock client to engage in any of the above behaviors could potentially lead to social consequences.