Trying to assign ethics to this is what makes this in a lose / lose situation.
No matter the outcome it is lose / lose, but by turning this into a Nash Equilibrium (the most famous of which is the metaphor of the Prisoner's Dilemma) it "traps" the players into this lose / lose narrative even more tightly. The group always loses even if individual players may win.
How does it turn into a Nash Equilibrium? It is when you enter a game theory mindset, a sport spectator mindset, and you hash out in your head all the options, and your opponent does the same, and both of you realize you two are adversaries and there can only be one winner, and this in turn cause your entire mindset to change, it causes you to stick to your guns even more so.