On a pure, simplistic, naive, reading of expected value it is the “rational” choice because $25 million is more than $1 million. The author’s point is that the

On a pure, simplistic, naive, reading of expected value it is the “rational” choice because $25 million is more than $1 million. The author’s point is that the simplistic understanding of expected value isn’t always wise. The audience is economists who use the economic equivalent of perfectly spherical cows and then wonder why their model isn’t all that good.