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Why? People who use the strategy of always paying don't live any longer than people who use the strategy of never paying. They also save money and get to find out a week in advance if they'd die so they can get their affairs in order.
That wasn't obvious to me. It's certainly false that "people who use the strategy of always paying have the same odds of losing $1000 as people who use the strategy of never paying". This means that the oracle's prediction takes its own effect into account. When asking about my future, the oracle doesn't ask "Will Kindly give me $1000 or die in the next week?" but "If hearing a prophecy about it, will Kindly give me $1000 or die in the next week?"
Hearing the prediction certainly changes the odds that the first clause will come... (read more)