@kenny-crane, thanks for your "random thoughts!"
The experiment you're describing reminds me of the old "tit-for-tat" algorithm... it can never lose; your first play is always to be "good," and every subsequent play you simply match what other player does. No matter what sequence is played, you will always be "one good" ahead.
As for how many "strikes" to give people... what's that old saying? "Fool me once, shame on you, Fool me twice, shame on me."