The problem here is that "learning how utils are measured" may be worth more than one util! So your actual reward would be less than one util because it would have to account for the utils from learning about utils. On the other hand if we do not know the value of learning about utils (we could get between 0 and 1 utils of information about utils) we end up with a variable number of extra utils between 0 and 1. But if we don't know how many utils it is, we will get very little information out of it, so it's utility is likely to approach one, unless learning how utils work is worth so much that even a tiny fraction of knowledge is worth almost one util. Okay so let's make this more concrete: Say you opt for n=1. Omega gives you $1. How much would you pay to know that $1 = 1 util? I might pay $20 for that information. So if $1 = 1 util omega has actually given me 21 utils. But Omega is giving me 21 utils, which is 20 more than he promised, a contradiction! It might be possible to describe this sort of system using differential equations, find some equilibria, and decide where utility is like that but if what you receive ends up being something like "you decide to buy a pet dog" this really isn't that useful.