conchis comments on Counterfactual Mugging - Less Wrong
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"Perfect knowledge would mean I also knew in advance that the coin would come up tails."
This seems crucial to me.
Given what I know when asked to hand over the $100, I would want to have pre-committed to not pre-committing to hand over the $100 if offered the original bet.
Given what I would know if I were offered the bet before discovering the outcome of the flip I would wish to pre-commit to handing it over.
From which information set I should evaluate this? The information set I am actually at seems the most natural choice, and it also seems to be the one that WINS (at least in this world).
What am I missing?
I'll give you the quick and dirty patch for dealing with omega: There is no way to know that, at that moment, you are not inside of his simulation. by giving him the 100$, there is a chance you are tranfering that money from within a simulation-which is about to be terminated-to outside of the simulation, with a nice big multiplier.