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
NandN+1are on the same team and are profit-maximizers, then the proposerNwill include the maximum profit IL. - If
NandN+1are antagonistic,Nmay construct an IL to sabotageN+1, making it difficult or impossible forN+1to include it or forcing them to drop the block. Some argue this is a feature, not a bug. - If
NandN+1are unfamiliar with each other, the situation remains as it was before.
For Proposers N and N+2:
- If
NandN+2are on the same team and are profit-maximizers,Nmight create an IL designed to knock outN+1, allowingN+2to 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.