I'll be stoic in the face sarcasm when it's fatiguing to me. I am not really afraid of hurting anyone's feelings and I usually know what's going on but I just don't feel and/or can't like expend the energy on dealing with it at the moment. My mind often just won't switch gears out of sincere mode to sarcasm mode. It's not really about fear or anything else but being deep into Fi at that moment at time and not really well oilled up on Ne.
"If you would convince a man that he does wrong, do right. But do not care to convince him. Men will believe what they see. Let them see."
Sometimes I ignore sarcasm because the idea the words imply are much more interesting and should be explored. Or also, I already have a thought qeued up and I don't want the conversation halted. I get it, though. And I also use it.
a lot of the time when i don't laugh at or acknowledge someone's joke, they think i didn't understand it and either try to explain it to me, or assume that i was offended. usually neither is the case, i just don't laugh at unfunny jokes . i'm sarcastic sometimes, but in excess it can be very unfunny. sarcasm is the lowest form of wit.
Ime, they are better than NFJs. Ne is quite receptive to multiple/hidden meanings.
A man builds. A parasite asks 'Where is my share?'
A man creates. A parasite says, 'What will the neighbors think?'
A man invents. A parasite says, 'Watch out, or you might tread on the toes of God... '
I think ENFP's are good about it, but sometimes they get confused. INFP's can be sensitive and want to attach meaning to things. My cousin says she usually recognizes it but kind of reacts to it seriously anyway because her unconscious mind perceives it that way. My INFP friend is kind of the same way. Both of them are sarcastic themselves, and I never really know if they're serious. And I think they never really know if I'm serious. Sometimes people say things like in a "just kidding but not really" kind of way. As for me (probably INTP, possibly INXP with J), I usually see it but don't really know how to react. I just kind of act confused and don't take it seriously, or try to respond with the same attitude. My INFJ friend doesn't really get it and gets offended really easily.