The class of problems which are well-posed in this type system is exactly the class of problems that would not change if you gave the agent a chance to self-modify in between receiving the problem statement and the start of the world program. Problems outside this class are neither fair nor solvable in principle nor interesting.
I work under the assumption that the problem statement is a world program or a prior over world programs. Maybe it's a bad assumption. Can you suggest a better one?
Some people on LW have expressed interest in what's happening on the decision-theory-workshop mailing list. Here's an example of the kind of work we're trying to do there.
In April 2010 Gary Drescher proposed the "Agent simulates predictor" problem, or ASP, that shows how agents with lots of computational power sometimes fare worse than agents with limited resources. I'm posting it here with his permission:
About a month ago I came up with a way to formalize the problem, along the lines of my other formalizations:
Also Wei Dai has a tentative new decision theory that solves the problem, but this margin (and my brain) is too small to contain it :-)
Can LW generate the kind of insights needed to make progress on problems like ASP? Or should we keep working as a small clique?