This is all downstream of the sophisticated chooser assigning extremely low probability to being offered that $0.02, despite the fact that it keeps happening.
You could “money pump” any agent if you were allowed to assume that they keep being wrong. A EUM standing by the sidelines here (with the same beliefs) would be incentivized to keep betting “this guy won’t be offered another $0.02″, and they’d also get “money-pumped” by constantly losing their bets.
This is all downstream of the sophisticated chooser assigning extremely low probability to being offered that $0.02, despite the fact that it keeps happening.
You could “money pump” any agent if you were allowed to assume that they keep being wrong. A EUM standing by the sidelines here (with the same beliefs) would be incentivized to keep betting “this guy won’t be offered another $0.02″, and they’d also get “money-pumped” by constantly losing their bets.
Yeah, you’re right, thanks. I was only half-awake when I wrote the comment.
The agent will pay $999k, but only a very limited number of times (e.g., once), so it’s not that the good kind of money pump.