Since the agent can deduce (by low-level simulation) what the predictor will do, the agent does not regard the prediction outcome as contingent on the agent's computation.
I'm confused on this point, would you mind checking if my thinking on it is correct?
My initial objection was that this seems to assume that the predictor doesn't take anything into account, and that the agent was trying to predict what the predictor would do without trying to figure out what the predictor would predict the agent would choose.
Then I noticed that the predictor isn't actually waiting for the agent to finish making its decision, it was using a higher level of representation of how the agent thinks. Taking this into account, the agent's ability to simulate the predictor implicitly includes the ability to compute what the predictor predicts the agent will do.
So then I was confused about why this is still a problem. My intuition was banging its head against the wall insisting that the predictor still has to take into account the agent's decision, and that the agent couldn't model the predictor's prediction as not contingent on the agent's decision.
Then I noticed that the real issue isn't any particular prediction that the agent thinks the predictor would predict, so much as the fact that the agent sees this happening with probability one, and happening regardless of what it chooses to do. Since the agent already "knows" what the predictor will predict, it is free to choose to two-box, which will always be higher utility once you can't causally effect the boxes.
What the agent tries to infer, is predictor's behavior for each of agent's possible actions, not just unconditional predictor's behavior. Being able to infer predictor's decision without assuming agent's action is equivalent to conclusing that predictor's decision is a constant function of agent's action (in agent's opinion, given the kind of decision-maker our agent is, which is something that it should be able to control better, but current version of the theory doesn't support).
Some people on LW have expressed interest in what's happening on the decision-theory-workshop mailing list. Here's an example of the kind of work we're trying to do there.
In April 2010 Gary Drescher proposed the "Agent simulates predictor" problem, or ASP, that shows how agents with lots of computational power sometimes fare worse than agents with limited resources. I'm posting it here with his permission:
About a month ago I came up with a way to formalize the problem, along the lines of my other formalizations:
Also Wei Dai has a tentative new decision theory that solves the problem, but this margin (and my brain) is too small to contain it :-)
Can LW generate the kind of insights needed to make progress on problems like ASP? Or should we keep working as a small clique?