UDT may two-box in the above scenario if it simulates the predictor once, but what if the UDT agent simulates the predictor twice, simulates itself using the above reasoning and two-boxing in simulation 1, and simulates itself one-boxing for whatever reason in simulation 2? The UDT agent that one-boxes "for whatever reason" does better, and thus the real UDT agent will realize this upon running these 2 simulations and one-box, which the predictor will reason that it would.
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?