Rummaging through the archives, I realized that a highly relevant article by 
Marcus Hutter 
apparently has not yet been discussed on this list, although many have 
downloaded it:

A Complete Theory of Everything (Will Be Subjective) 
Algorithms 2010, 3(4), 329-350; doi:10.3390/a3040329
Part of the Special Issue 
"Algorithmic Complexity in Physics & Embedded Artificial Intelligences"
In Memoriam Ray Solomonoff (1926-2009)

http://www.mdpi.com/1999-4893/3/4/329/

Abstract: Increasingly encompassing models have been suggested for our world. 
Theories
range from generally accepted to increasingly speculative to apparently bogus. 
The
progression of theories from ego- to geo- to helio-centric models to universe 
and multiverse
theories and beyond was accompanied by a dramatic increase in the sizes of the 
postulated
worlds, with humans being expelled from their center to ever more remote and 
random
locations. Rather than leading to a true theory of everything, this trend faces 
a turning point
after which the predictive power of such theories decreases (actually to zero). 
Incorporating
the location and other capacities of the observer into such theories avoids 
this problem
and allows to distinguish meaningful from predictively meaningless theories. 
This also
leads to a truly complete theory of everything consisting of a (conventional 
objective)
theory of everything plus a (novel subjective) observer process. The observer 
localization
is neither based on the controversial anthropic principle, nor has it anything 
to do with
the quantum-mechanical observation process. The suggested principle is extended 
to more
practical (partial, approximate, probabilistic, parametric) world models 
(rather than theories
of everything). Finally, I provide a justification of Ockham’s razor, and 
criticize the anthropic
principle, the doomsday argument, the no free lunch theorem, and the 
falsifiability dogma.

Keywords: world models; observer localization; predictive power; Ockham’s razor;
universal theories; inductive reasoning; simplicity and complexity; universal 
self-sampling;
no-free-lunch; computability

Remarkably, Prof. Hutter holds doctoral degrees in both physics and computer 
science, 
where he made fundamental contributions.

                                          

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