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I read the paper, and overall it's an interesting framework. One thing I am somewhat unconvinced about (likely because I have misunderstood something) is its utility despite the dependence on the world model. If we prove guarantees assuming a world model, but don't know what happens if the real world deviates from the world model, then we have a problem. Ideally perhaps we want a guarantee akin to what's proved in learning theory, for example, that the accuracy will be small for any data distribution as long as the distribution remains the same during training and testing.
But perhaps I have misunderstood what's meant by a world model and maybe it's simply the set of precise assumptions under which the guarantees have been proved. For example, in the learning theory setup, maybe the world model is the assumption that the training and test distributions are the same, as opposed to a description of the data distribution.
Hmm, but what if everything gets easier to produce at a similar rate as the consumer basket? Won't the prices remain unaffected then?