ike comments on Probabilities Small Enough To Ignore: An attack on Pascal's Mugging - Less Wrong
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Of course, and the paper cited in http://wiki.lesswrong.com/wiki/Pascal's_mugging makes that argument rigorous.
It's a problem of expected utility, not necessarily probability. And I still would like to know which axiom it ends up violating. I suspect Continuity.
We can replace Continuity with the Archimedean property (or, 'You would accept some chance of a bad outcome from crossing the street.') By my reading, this ELU idea trivially follows Archimedes by ignoring the part of a compound 'lottery' that involves a sufficiently small probability. In which case it would violate Independence, and would do so by treating the two sides as effectively equal when the differing outcomes have small enough probability.