Closely related to: How Many LHC Failures Is Too Many?
Consider the following thought experiment. At the start, an "original" coin is tossed, but not shown. If it was "tails", a gun is loaded, otherwise it's not. After that, you are offered a big number of rounds of decision, where in each one you can either quit the game, or toss a coin of your own. If your coin falls "tails", the gun gets triggered, and depending on how the original coin fell (whether the gun was loaded), you either get shot or not (if the gun doesn't fire, i.e. if the original coin was "heads", you are free to go). If your coin is "heads", you are all right for the round. If you quit the game, you will get shot at the exit with probability 75% independently of what was happening during the game (and of the original coin). The question is, should you keep playing or quit if you observe, say, 1000 "heads" in a row?
Intuitively, it seems as if 1000 "heads" is "anthropic evidence" for the original coin being "tails", that the long sequence of "heads" can only be explained by the fact that "tails" would have killed you. If you know that the original coin was "tails", then to keep playing is to face the certainty of eventually tossing "tails" and getting shot, which is worse than quitting, with only 75% chance of death. Thus, it seems preferable to quit.
On the other hand, each "heads" you observe doesn't distinguish the hypothetical where the original coin was "heads" from one where it was "tails". The first round can be modeled by a 4-element finite probability space consisting of options {HH, HT, TH, TT}, where HH and HT correspond to the original coin being "heads" and HH and TH to the coin-for-the-round being "heads". Observing "heads" is the event {HH, TH} that has the same 50% posterior probabilities for "heads" and "tails" of the original coin. Thus, each round that ends in "heads" doesn't change the knowledge about the original coin, even if there were 1000 rounds of this type. And since you only get shot if the original coin was "tails", you only get to 50% probability of dying as the game continues, which is better than the 75% from quitting the game.
(See also the comments by simon2 and Benja Fallenstein on the LHC post, and this thought experiment by Benja Fallenstein.)
The result of this exercise could be generalized by saying that counterfactual possibility of dying doesn't in itself influence the conclusions that can be drawn from observations that happened within the hypotheticals where one didn't die. Only if the possibility of dying influences the probability of observations that did take place, would it be possible to detect that possibility. For example, if in the above exercise, a loaded gun would cause the coin to become biased in a known way, only then would it be possible to detect the state of the gun (1000 "heads" would imply either that the gun is likely loaded, or that it's likely not).
If all the coins are quantum-mechanical, you should never quit, nor if all the coins are logical (digits of pi). If the first coin is logical ("what laws of physics are true?", in the LHC dilemma), the following coins are quantum, and your utility is linear in squared amplitude of survival, again you should never quit. However, if your utility is logarithmic in squared amplitude (i.e., dying in half of your remaining branches seems equally bad no matter how many branches you have remaining), then you should quit if your first throw comes up heads.
I'm not getting the same result... let's see if I have this right.
If you quit if the first coin is heads: 50%*75% death rate from quitting on heads, 50%*50% death rate from tails
If you never quit: 50% death rate from eventually getting tails (minus epsilon from branches where you never get tails)
These deathrates are fixed rather than a distribution, so switching to a logarithm isn't going to change which of them is larger.
I don't think the formula you link to is appropriate for this problem... it's dominated by the log(2^-n) factor, which fails to account ... (read more)