View source for AD/BC problem

The chapter "Risk Policies", in Kahneman's "Thinking, Fast and Slow", opens with this example, which makes vivid the pitfalls of relying on our intuitions in choosing between bets:

<blockquote>
Imagine that you face the following pair of concurrent decisions. First examine both decisions, then make your choices.

* Decision (i): Choose between
** A. sure gain of $240
** B. 25% chance to gain $1,000 and 75% chance to gain nothing
* Decision (ii): Choose between
** C. sure loss of $750
** D. 75% chance to lose $1,000 and 25% chance to lose nothing
</blockquote>

Most people, looking at both concurrently, choose A and D.  Now consider this second choice:

<blockquote>
* AD. 25% chance to win $240 and 75% chance to lose $760
* BC. 25% chance to win $250 and 75% chance to lose $750
</blockquote>

Clearly, any sane person will choose BC here; it dominates option AD.  However, AD is exactly the combination of options A and D, while BC is the combination of B and C.