2 points:
1) I think it's merely an illustration of a kind of contest where
the 'winner' is neither immediately clear, nor obvious - in a sense,
it's a mutual loss. You could just as likely have a mutual win,
etc. I think that's what was being asked.
2) While I wouldn't object to some clarity (from comments here) I can see this being a very common occurrence in interpersonal conflicts, where (for example) you may have deeply offended someone or made a nasty enemy, but he/she doesn't necessarily have to make that obvious. Question for the list: have people done this much so far, or is it almost too much to keep in a DM's mind?
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