In true Dilemmas, if we both do A rather than E, we are doing better in S’s terms. We are causing the S-given aim of each to be better achieved. This is so on all theories about self-interest. We do better in S’s terms if we do what S tells us not to do.
He fails complsegtely for one reason. He does not take discounts of value over time. Should he read Human Action, he would know that evaluation of anything human is time dependant. One might evaluate one action today differently than tomorrow.