Scenario (b) doesn't explain/analyse the situation the way I'd explain/analyse it. If Bob is able to precommit himself to play C if and only if Alice plays C, then Alice's mindreading reads Bob's precommitment, Alice plays C to ensure Bob will also play C (otherwise Alice would lose), then Bob's precommitment is followed through and the (C, C) reality becomes true.
If someone can plausibly precommit themselves, via human concepts like honor or duty or obligation, or via computer concepts like rewriting one's software code -- and if they can signal this convincingly, then mutual cooperation becomes a possibility.
"Is this scenario just a theoretical curiosity that can never happen in real life because it is impossible to accurately predict the actions of any agent of any signficant complexity"
It's scenario that is already a reality to some limited expect, though we use concepts like duty, honor, etc... It doesn't always work, mainly because we can't signal effectively the solidity of our precommitment, nor are we indeed always of such iron will that our precommitments are actually solid enough.
EDIT TO ADD: And isn't this concept pretty much what the whole Mutually Assured Destruction doctrine was built on?
Either way, this question is obviously bad for a survey -- as it has to be answered with a small essay, not with a multiple-choice.
The first draft of the 2012 Less Wrong Census/Survey is complete (see 2011 here). I will link it below if you promise not to try to take the survey because it's not done yet and this is just an example!
2012 Less Wrong Census/Survey Draft
I want three things from you.
First, please critique this draft. Tell me if any questions are unclear, misleading, offensive, confusing, or stupid. Tell me if the survey is so unbearably long that you would never possibly take it. Tell me if anything needs to be rephrased.
Second, I am willing to include any question you want in the Super Extra Bonus Questions section, as long as it is not offensive, super-long-and-involved, or really dumb. Please post any questions you want there. Please be specific - not "Ask something about abortion" but give the exact question you want me to ask as well as all answer choices.
Try not to add more than five or so questions per person, unless you're sure yours are really interesting. Please also don't add any questions that aren't very easily sort-able by a computer program like SPSS unless you can commit to sorting the answers yourself.
Third, please suggest a decent, quick, and at least somewhat accurate Internet IQ test I can stick in a new section, Unreasonably Long Bonus Questions.
I will probably post the survey to Main and officially open it for responses sometime early next week.