I wrote up a jupyter notebook myself looking at this problem a couple years ago and I was thinking about cleaning it up into a blog post. Oh well. Guess that

I wrote up a jupyter notebook myself looking at this problem a couple years ago and I was thinking about cleaning it up into a blog post. Oh well. Guess that just goes to show the dangers of procrastination. For what it's worth, my takeaway was that the "paradox" is that we aren't accounting for the nonlinear utility of money. Therefore the exponentially unlikely probabilities of winning quadrillions of dollars have exponentially large weights. But a quadrillion dollars isn't a million times more useful to me than a billion dollars. So if you account for that saturation effect and take the expected utility instead, the "paradox" goes away.