Rather than admit they have been fooled, the townspeople truly believe it is more sensible to devise a plan to fool the others as well. And they plot fool others as well instead of being the only ones as you can see in the following excerpt:
"But we don't want to be the laughing stock of this whole town, I reckon, and never hear the last of this thing as long as we live. No. What we want is to go out of here quiet, and talk this show up, and sell the rest of the town! Then we'll all be in the same boat."