The source is here. I'll restate the problem in simpler terms:
You are one of a group of 10 people who care about saving African kids. You will all be put in separate rooms, then I will flip a coin. If the coin comes up heads, a random one of you will be designated as the "decider". If it comes up tails, nine of you will be designated as "deciders". Next, I will tell everyone their status, without telling the status of others. Each decider will be asked to say "yea" or "nay". If the coin came up tails and all nine deciders say "yea", I donate $1000 to VillageReach. If the coin came up heads and the sole decider says "yea", I donate only $100. If all deciders say "nay", I donate $700 regardless of the result of the coin toss. If the deciders disagree, I don't donate anything.
First let's work out what joint strategy you should coordinate on beforehand. If everyone pledges to answer "yea" in case they end up as deciders, you get 0.5*1000 + 0.5*100 = 550 expected donation. Pledging to say "nay" gives 700 for sure, so it's the better strategy.
But consider what happens when you're already in your room, and I tell you that you're a decider, and you don't know how many other deciders there are. This gives you new information you didn't know before - no anthropic funny business, just your regular kind of information - so you should do a Bayesian update: the coin is 90% likely to have come up tails. So saying "yea" gives 0.9*1000 + 0.1*100 = 910 expected donation. This looks more attractive than the 700 for "nay", so you decide to go with "yea" after all.
Only one answer can be correct. Which is it and why?
(No points for saying that UDT or reflective consistency forces the first solution. If that's your answer, you must also find the error in the second one.)
I'm not sure if this is relevant either, but I'm also not sure that such an assumption is needed. Note that failing to coordinate is the worst possible outcome - worse than successfully coordinating on any answer. Imagine that you inhabit case 2: you see a good argument for "yea", but no equally good argument for "nay", and there's no possible benefit to saying "nay" unless everyone else sees something that you're not seeing. Framed like this, choosing "yea" sounds reasonable, no?
There's no particular way I see to coordinate on a "yea" answer. You don't have any ability to coordinate with others while you're answering questions, and "nay" appears to be the better bet before the problem starts.
It's not uncommon to assume that everyone in a problem like this thinks in the same way you do, but I think making that assumption in this case would reduce it to an entirely different and less interesting problem -- mainly because it renders the zero in the payoff matrix irrelevant if you choose a deterministic solution.