Extremely Counterfactual Mugging or: the gist of Transparent Newcomb

Bongo

Omega will either award you $1000 or ask you to pay him $100. He will award you $1000 if he predicts you would pay him if he asked. He will ask you to pay him $100 if he predicts you wouldn't pay him if he asked.

Omega asks you to pay him $100. Do you pay?

This problem is roughly isomorphic to the branch of Transparent Newcomb (version 1, version 2) where box B is empty, but it's simpler.

Here's a diagram:

Omega will either award you $1000 or ask you to pay him $100. He will award you $1000 if he predicts you would pay him if he asked. He will ask you to pay him $100 if he predicts you wouldn't pay him if he asked.

Omega asks you to pay him $100. Do you pay?

This problem is roughly isomorphic to the branch of Transparent Newcomb (version 1, version 2) where box B is empty, but it's simpler.

Here's a diagram:

By paying, you reduce probability of the low-utility situation you're experiencing, and correspondingly increase the probability of the counterfactual with Omega Award, thus increasing overall expected utility. Reality is so much worse than its alternatives that you're willing to pay to make it less real.