Can you give an example where an agent with a complete and correct understanding of its situation would do better with CDT than with UDT?
An agent does worse by giving in to blackmail only if that makes it more likely to be blackmailed. If a UDT agent knows opponents only blackmail agents that pay up, it won’t give in.
If you tell a CDT agent “we’re going to simulate you and if the simulation behaves poorly, we will punish the real you,” it will ignore that and be punished. If the punishment is sufficiently harsh, the UDT agent that changed its behavior does better than the CDT agent. If the punishment is insufficiently harsh, the UDT agent won’t change its behavior.
The only examples I’ve thought of where CDT does better involve the agent having incorrect beliefs. Things like an agent thinking it faces Newcomb’s problem when in fact Omega always puts money in both boxes.
Your scheme seems to be Jaynes’s Ap distribution, discussed on LW here.