RobinZ comments on What makes you YOU? For non-deists only. - Less Wrong
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I think in practice I'd probably set N pretty high (10? 100? 10k?) - it's hard to know what one will do in extreme situations, particularly such unlikely ones.
But an alternative question might be: what should a rational entity do? The answer to this alternative is much easier to compute, and I think it's where the N=1 or N=2 answers are coming from. Would you agree that a creature evolved in an environment with such teleporter-and-duplicators would casually use them at N=1 and eagerly use them at N=2?
I think you run into logistical problems when N gets large, by the way.