wedrifid comments on Decision Theory Paradox: PD with Three Implies Chaos? - Less Wrong
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Um, they don't lose. What the TDT agents care about is the number of children they have. If they cared about the total number of descendants they have the cost of cooperating with DefectBots or CliqueBots would be exponentially higher (and TDT would act as CliqueBots).
Edit: Come to think of it, they wouldn't act like CliqueBots. Unlike CliqueBots they would also cooperate with CooperateBots. And if you include CooperateBots in the simulation TDT would beat CliqueBots.
Oh, good point. CliqueBot is a fail strategy! CliqueBot++ would need to allow exceptions such that it cooperates with (CliqueBoT++ && anything that it does not consider a serious rival).