SoullessAutomaton comments on Counterfactual Mugging - Less Wrong
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The value(s) for which the limit is being taken here is unidirectional predictive power, which is loosely a function of the difference in intelligence between the two agents; intuitively, I think a case could be made that (assuming ideal rationality) the total accuracy of mutual behavior prediction between two agents is conserved in some fashion, that doubling the predictive power of one unavoidably would roughly halve the predictive power of the other. Omega represents an entity with a delta-g so large vs. us that predictive power is essentially completely one-sided.
From that basis, allowing the unidirectional predictive power of both agents to go to infinity is probably inherently ill-defined and there's no reason to expect the problem to have a solution.