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That's kind of my point-- it is a utility calculation, not some mystical er-problem. TDT-type problems occur all the time in real life, but they tend not to involve 'perfect' predictors, but rather other flawed agents. The decision to cooperate or not cooperate is thus dependent on the calculated utility of doing so.
Right, I was mainly responding to the implication that TDT would be to blame for that wrong answer.