http://en.wikipedia.org/wiki/Pain_in_crustaceans
In February 2005, a review of the literature by the Norwegian Scientific Committee for Food Safety tentatively concluded that "it is unlikely that [lobsters] can feel pain," though they note that "there is apparently a paucity of exact knowledge on sentience in crustaceans, and more research is needed." This conclusion is based on the lobster's simple nervous system. The report assumes that the violent reaction of lobsters to boiling water is a reflex to noxious stimuli.
However, review by the Scottish animal rights group Advocate for Animals released in the same year reported that "scientific evidence ... strongly suggests that there is a potential for [lobsters] to experience pain and suffering," primarily because lobsters (and other decapod crustaceans) "have opioid receptors and respond to opioids (analgesics such as morphine) in a similar way to vertebrates," indicating that lobsters' reaction to injury changes when painkillers are applied. The similarities in lobsters' and vertebrates' stress systems and behavioral responses to noxious stimuli were given as additional evidence for their capacity for pain.
A 2007 study at Queen's University, Belfast, suggested that crustaceans do feel pain. In the experiment, when the antennae of prawns were rubbed with sodium hydroxide or acetic acid, the animals showed increased grooming of the afflicted area and rubbed it more against the side of the tank. Moreover, this reaction was inhibited by a local anesthetic, even though control prawns treated with only anesthetic did not show reduced activity. Professor Robert Elwood, who headed the study, argues that sensing pain is crucial to prawn survival, because it encourages them to avoid damaging behaviors. Some scientists responded, saying the rubbing may reflect an attempt to clean the affected area.
In a subsequent 2009 study, Prof. Elwood and Mirjam Appel showed that hermit crabs make motivational tradeoffs between shocks and the quality of the shells they inhabit. In particular, as crabs are shocked more intensely, they become increasingly willing to leave their current shells for new shells, and they spend less time deciding whether to enter those new shells. Moreover, because the researchers did not offer the new shells until after the electrical stimulation had ended, the change in motivational behavior was the result of memory of the noxious event, not an immediate reflex.
Morphine, an analgesic, and naloxone, an opioid receptor antagonist, may affect a related species of estuarine crab (Chasmagnathus granulatus) in much the same way they affect vertebrates: injections of morphine into crabs produced a dose-dependent reduction of their defensive response to an electric shock. (However, the attenuated defensive response could originate from either the analgesic or sedative properties of morphine, or both) These findings have been replicated for other invertebrate species, but similar data is not yet available for lobsters.