Elizier,
Th rational anwser to Pascal's mugging is to refuse, attempt to persuade the mugger, and when that fails (which I postulate based on an ethical entity able to comprehend 3^^^3 and an unethical entity willing to torture that many) to initiate conflict.

The calculational algebra of loss over probability has to be tempered by future prediction:

What is the chance the mugger will do this again? If my only options are to give 5 or not give 5 does it mean 3^^^^^3 will end up being at risk as the mugger keeps doing this? How do I make it stop?

The responsible long term anwser is: let the hostages die if needed to kill the terrorist, because otherwise you get more terrorists taking hostages.

Elizier, Th rational anwser to Pascal's mugging is to refuse, attempt to persuade the mugger, and when that fails (which I postulate based on an ethical entity able to comprehend 3^^^3 and an unethical entity willing to torture that many) to initiate conflict.

The calculational algebra of loss over probability has to be tempered by future prediction:

What is the chance the mugger will do this again? If my only options are to give 5 or not give 5 does it mean 3^^^^^3 will end up being at risk as the mugger keeps doing this? How do I make it stop?

The responsible long term anwser is: let the hostages die if needed to kill the terrorist, because otherwise you get more terrorists taking hostages.