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lessdazed comments on Prisoner's Dilemma Tournament Results - Less Wrong
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Variants I'd like to see:
1) You can observe rounds played by other bots.
2) You can partially observe rounds played by other bots.
3) (The really interesting one.) You get a copy of the other bot's source code and are allowed to analyze it. All bots have 10,000 instructions per turn, and if you run out of time the round is negated (both players score 0 points). There is a standard function for spending X instructions evaluating a piece of quoted code, and if the evaled code tries to eval code, it asks the outer eval-ing function whether it should simulate faithfully or return a particular value. (This enables you to say, "Simulate my opponent, and if it tries to simulate me, see what it will do if it simulates me outputting Cooperate.")
In the OP, defect/defect gives each player one point. Did you intend to add a fifth possible outcome for each iteration?
I think a more natural expansion would be to have a third choice besides cooperate and defect lead to nine different possible scores per iteration. For a program to run out of time is a choice pre-committed to by the design of the analyzing function, it's not too different from the outcomes of cooperate or defect.