The reason I recommend David not play the inverse lottery isn't because all things that give small rewards for a small probability of great loss are bad, it's because the inverse lottery (like the regular lottery) is set up so that the expected utility of playing is lower than the expected utility of not playing. An inverse lottery in which the expected utility of playing is better than the expected utility of not playing would be a good bet.
A good argument for driving cars wouldn't be that an accident could never happen and is ridiculous (which is how I interpret David's pro-LHC argument) but that the benefits gained from driving cars outweigh the costs.
In the case of your original assertion - that it was reasonable to worry about the risks of the LHC - the argument for the probability of disaster being too small to worry about is that we're not working out the probability assuming such events have never happened before - we're working out the probability assuming such events and stronger ones happen all the time, because they do. So very many collisions occur just near Earth of greater energies that this puts a strong upper bound on the chances of disaster occurring in the LHC itself. Even multiplied by ...
For background, see here.
In a comment on the original Pascal's mugging post, Nick Tarleton writes:
Coming across this again recently, it occurred to me that there might be a way to generalize Vassar's suggestion in such a way as to deal with Tarleton's more abstract formulation of the problem. I'm curious about the extent to which folks have thought about this. (Looking further through the comments on the original post, I found essentially the same idea in a comment by g, but it wasn't discussed further.)
The idea is that the Kolmogorov complexity of "3^^^^3 units of disutility" should be much higher than the Kolmogorov complexity of the number 3^^^^3. That is, the utility function should grow only according to the complexity of the scenario being evaluated, and not (say) linearly in the number of people involved. Furthermore, the domain of the utility function should consist of low-level descriptions of the state of the world, which won't refer directly to words uttered by muggers, in such a way that a mere discussion of "3^^^^3 units of disutility" by a mugger will not typically be (anywhere near) enough evidence to promote an actual "3^^^^3-disutilon" hypothesis to attention.
This seems to imply that the intuition responsible for the problem is a kind of fake simplicity, ignoring the complexity of value (negative value in this case). A confusion of levels also appears implicated (talking about utility does not itself significantly affect utility; you don't suddenly make 3^^^^3-disutilon scenarios probable by talking about "3^^^^3 disutilons").
What do folks think of this? Any obvious problems?