Re: Diplomacy ethics
I think Machiavellian just means 'caveat emptor', which would be the 'by reputation' option.
Treachery encouraged is certainly permissive of machiavellian play, but there are fewer consequences, so a stab doesn't even need to pay off by as much to be worthwhile. Basically, you're altering the penalty and reward metric, not the nature of the decision making.
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