Wei_Dai comments on Worse Than Random - Less Wrong
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To be precise, in every case where the environment only cares about your actions and not what algorithm you use to produce them, any algorithm that can be improved by randomization can always be improved further by derandomization.
It seems that randomization can serve as a general substitute for memory. It's not a perfect substitute, but whenever you don't want to, or can't, remember something for some reason, randomization might help.
Besides the example of The Absent-Minded Driver, I've realized there are other examples in cryptography:
I might do a post on this, if I could figure out a way to think about why randomization substitutes for memory.
Let A and B be actions leading to deterministic outcomes, and let C be some lottery between A and B. A rational agent will never prefer both C>A and C>B.
When you repeat the scenario without memory, the lottery is no longer exactly over choices the agent could deterministically make: the randomness is re-rolled in places where the agent doesn't get another decision. Despite what the options are labeled, you're really choosing between 2xA, 2xB, and a lottery over {2xA, 2xB, A+B}. Since the lottery contains an outcome that isn't available to the deterministic decision, it may be preferred.
I think this is equivalent to the role played by observational evidence in UDT1: Observations allow a constant strategy to take different actions in different places, whereas without any observations to distinguish agent instances you have to pick one action to optimize both situations. Of course good evidence is reliably correlated with the environment whereas randomness doesn't tell you which is which, but it's better than nothing.
I had some comments in this thread that outline the way that I think about this.