Squark comments on Save the princess: A tale of AIXI and utility functions - Less Wrong
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I made some improvements to the formalism, see http://lesswrong.com/lw/cze/reply_to_holden_on_tool_ai/8fjb
There I consider a stochastic model M and here a non-deterministic model, but the same principle can be applied here. Namely, we consider a Solomonoff process starting t0 time before formation of agent A, conditioned by observance of M's rules in the time before A's formation and by A's existence at time of its formation. The expected utility is computed with respect to the resulting distribution