I'm not sure it's really more counterintuitive that (known) ability to predict can be a disadvantage than it is that (known) having more options can be a disadvantage.
In this case, predictability is an advantage because it allows you to make binding commitments; in other words, to visibly eliminate options that would otherwise be available to you. And (see, e.g., Schelling) the ability to visibly eliminate some of your own options is very often valuable, because those options might be ones whose possibility gives the other player reason to do something that would be bad for you.
In this case, A's predictability effectively takes the possibility that A might cooperate out of the picture for B, which means that B no longer has reason to defect.
(The examples in Schelling, IIRC, tend to be of an opposite kind, more like the PD, where the ability to assure the other player that you won't defect is advantageous for both parties.)
I'm not sure it's really more counterintuitive that (known) ability to predict can be a disadvantage than it is that (known) having more options can be a disadvantage.
I wonder if it might be fruitful to think generally about decision theories in terms of their ability to rule out suboptimal decisions, as opposed to their ability to select the optimal decision.
I also wanted you to read something I wrote below:
...When described in this way, I am reminded that I would be very interested to see this sort of problem examined in the modal agents framework. I h
I don't know enough math and I don't know if this is important, but in the hopes that it helps someone figure something out that they otherwise might not, I'm posting it.
In Soares & Fallenstein (2015), the authors describe the following problem:
More precisely: two agents A and B must choose integers m and n with 0 ≤ m, n ≤ 10, and if m + n ≤ 10, then A receives a payoff of m dollars and B receives a payoff of n dollars, and if m + n > 10, then each agent receives a payoff of zero dollars. B has perfect predictive accuracy and A knows that B has perfect predictive accuracy.
Consider a variant of the aforementioned decision problem in which the same two agents A and B must choose integers m and n with 0 ≤ m, n ≤ 3; if m + n ≤ 3, then {A, B} receives a payoff of {m, n} dollars; if m + n > 3, then {A, B} receives a payoff of zero dollars. This variant is similar to a variant of the Prisoner's Dilemma with a slightly modified payoff matrix:
Likewise, A reasons as follows:
And B:
I figure it's good to have multiple takes on a problem if possible, and that this particular take might be especially valuable, what with all of the attention that seems to get put on the Prisoner's Dilemma and its variants.