In this paper, I compare cases of self-deception and cases of pragmatic encroachment and argue that confronting these cases generates a dilemma about rationality. This dilemma turns on the idea that subjects are motivated to avoid costly false beliefs, and that both cases of self-deception and cases of pragmatic encroachment are caused by an interest to avoid forming costly false beliefs. Even though both types of cases can be explained by the same belief-formation mechanism, only self-deceptive beliefs are irrational: the subjects depicted in high-stakes cases typically used in debates on pragmatic encroachment are, on the contrary, rational. If we find ourselves drawn to this dilemma, we are forced either to accept—against most views pres...