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eli_sennesh comments on Timelessness as a Conservative Extension of Causal Decision Theory - LessWrong
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The problem is that this can lead to inconsistency when you have two omegas trying to predict each other.
This is one of the arguments against the possibility of Laplace's Demon, and I agree that a world with two Omegas is probably going to be inconsistent.
It should be noted that this also makes transparent Newcomb ill-posed because the transparent boxes make the box-picker essentially an omega.