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 different approaches to decision-making under risk and uncertainty, highlighting key works by influential researchers like John von Neumann, Oskar Morgenstern, and Leonard Savage. The main focus is on how the understanding of choice has shifted and how this has impacted the relationship between economics and psychology.