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The numbing traps passive text reads: 

Enemies you Slow or hit with Fan of Knives, Spike Trap, Caltrops, Grenades,
and Sentry fire have their damage reduced by 25% for 3 seconds.

Let's say you're in a game with 4 Demon Hunters, all running the numbing traps passive. Would the damage reduction from these passives stack? If so, I'm assuming they stack multiplicatively.

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You are correct, these stack multiplicatively. Here is a reddit with some empirical data testing a similar damage reduction from a monk.

Each one is assessed in some order determined by the game, so really the reduction for 4 players would be

damage = total * (1 - 0.25) * (1 - 0.25) * (1 - 0.25) * (1 - 0.25)

Which means the total damage reduction is going to be

1 - (0.75^4) = 0.68359375

Which is is roughly 68.4% from 4 stacks of 25% damage reduction.

25% reduction for 1-4 players:

  • 1: 25%
  • 2: 43.8%
  • 3: 57.8%
  • 4: 68.4%
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