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Logically, it's more beneficial for the Mafia to eliminate the Serial Killer now.
If we consider the worst-case scenario, where the Serial Killer has already killed four people, there are currently only five people alive, with two Mafia members. Eliminating the Serial Killer essentially gives them the victory because the Lord cannot instantly kill anyone.
On the other hand, if the Lord is already gone, eliminating a Mafia member leads to a situation of 2-1-1, where everything is decided during the night, and even under some unrealistic circumstances, the town can win, while the Mafia has almost no chance.
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By the way, it reminds me of Revan's first Mafia game, with its unique setting. There, the Mafia also acted solely in their own self-interest.