In addition to fostering coordination, common knowledge prevents people from hiding behind the veil of plausible deniability. To get away with selfish behaviour, we often pretend to ignore its consequences. If you can plausibly say that you didn’t know about the poor working conditions of people in sweatshops, people will judge you less harshly for buying cheap clothes. But if many people virtue signal by campaigning for better workers’ rights, the issue rises to common awareness – and, when everyone can expect everyone to know, it is harder for you to claim ignorance as a defence.
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“Here we go again, with your mixed signals and my second thoughts.”
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