Negotiations between Schultz and Candie end poorly in Django Unchained, with both of them getting shot dead, not a Pareto efficient outcome, a real tragedy.
The failure was in Schultz and Django failing to game-theoretically communicate to Candie that they are businessmen not to be trifled with, that Shultz was someone who will irrationally kill if sufficiently provoked. If this were done, Candie may have been less of an asshole near the end of negotiations, not provoking the fatal gunfight.
Of course, if the director wants them to die, they're gonna die, Pareto efficiency be damned!
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