Common Knowledge creates a **Focal Point**—a sharp, binary line that coordinates action. - **Truth creates Sharp Lines.** - **Hypocrisy creates "The Blur."** ==Sometimes, **The Blur** is the only place where peace can exist.== - **Example: Diplomacy (The "One China" Policy or Nuclear Ambiguity)** - **The Truth:** Taiwan acts like a country. Israel has nuclear weapons. - **The Danger:** If the US officially says "Taiwan is a country" (Truth/Common Knowledge), China loses face and must invade to restore its authority (The Hawk/Dove game). If Israel admits "We have nukes," Iran must build them too. - **The Mechanism:** We use **Strategic Ambiguity**. Everyone knows the truth (Private Knowledge), but we refuse to make it **Common Knowledge**. - **The Result:** The Blur allows two contradictory realities to exist at once. Peace is maintained. **Conclusion:** Truth forces a winner and a loser (a Zero-Sum Game). Hypocrisy allows for a "Positive-Sum" compromise by letting everyone save face.