“cooperating provably results in a better payoff than defecting”. This is enough to convince the agent to cooperate. But if you switch C and D, you end up with a proposition that means “cooperating provably results in a worse payoff than defecting”. This is not enough to convince the agent to defect. The agent will defect if there is no proof that cooperating results in a better payoff than defecting. So at least one would have to say a bit more here in the proof.
One can try to take the proof of Proposition 3 and switch C and D around, but one quickly runs into difficulty: The second line of that proof contains
%20=%20C%20\to%20\pi_0%20U()%20=%20\underline{a}%20)%20\\%20\mbox{\quad\quad\quad\quad}%20\wedge%20(A(\ulcorner%20U%20\urcorner,%200)%20=%20D%20\to%20\pi_0%20U()%20=%20\underline{b})%20\biggr)%20\wedge%20a%3Eb)“cooperating provably results in a better payoff than defecting”. This is enough to convince the agent to cooperate. But if you switch C and D, you end up with a proposition that means “cooperating provably results in a worse payoff than defecting”. This is not enough to convince the agent to defect. The agent will defect if there is no proof that cooperating results in a better payoff than defecting. So at least one would have to say a bit more here in the proof.