Expected utility theory separates economics from psychology, changing decision-making forever.
The article discusses how the theory of expected utility evolved over time, leading to a separation between economics and psychology. It explores the works of various scholars, including John von Neumann, Oskar Morgenstern, and Milton Friedman, to understand how people make choices under risk and uncertainty. The main focus is on how the theory of choice has developed and influenced the fields of economics and psychology.