I'd have to say the main focus of SL these days is the political game. It's alot of fun and it gets pretty intense. I dig it!
Mostly I think you just have to have a system where people are rewarded in some way, but only in competition with one another. For us it's a House Ranking System determined by the Emperor.
Another game that does this VERY well, imo, is Armageddon. The harsh environment only adds to the backstabbing and conniving that goes on there. Very cool.
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