This means you can build an action that says something like “if I am observable, then I am not observable. If I am not observable, I am observable” because the swapping doesn’t work properly.
Constructing this more explicitly: Suppose that a1e∈S and a2e∈W∖S. Then if(S,a2,a1) must be empty. This is because for any action a3 in the set if(S,a2,a1), if a3e was in S then it would have to equal a2e which is not in S, and if a3e was not in S it would have to equal a1e which is in S.
Constructing this more explicitly: Suppose that a1e∈S and a2e∈W∖S. Then if(S,a2,a1) must be empty. This is because for any action a3 in the set if(S,a2,a1), if a3e was in S then it would have to equal a2e which is not in S, and if a3e was not in S it would have to equal a1e which is in S.
Since if(S,a2,a1) is empty, S is not observable.