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The search results for limitations are very strong.

  • The Allais Paradox28, 29, 30, 31, 32 is consistently mentioned as a key challenge to the independence axiom of expected utility theory.
  • The Ellsberg Paradox24, 25, 26, 27 highlights issues with ambiguity aversion.
  • Prospect Theory17, 18, 19, 20, 21, 22, 23 by Kahneman and Tversky is repeatedly cited as the major alternative, addressing issues like loss aversion and framing effects.

For an external link in the "Limitations and Criticisms" section, I could use a link explaining the Allais or Ellsberg paradox, or a general overview of behavioral economics critiques.

  • The "Allais Paradox - The Decision Lab"16 or "The Ellsberg Paradox and the ambiguity and complexity of decision-making - LSE Blogs"15 look like good, concise explanations from reputable sources.
  • BehavioralEconomics.com also has a good summary of "Ambiguity (uncertainty) aversion"14, which directly cites Ellsberg (1961). This one seems particularly good because it directly ties ambiguity aversion to stock market non-participation.

For the Kahneman & Tversky (1979) "Prospect Theory: An Analysis of Decision under Risk" paper, snippet13 shows it in Econometrica, and12 is an MIT link to a technical report of the paper, which would be an excellent academic source for the origin of prospect theory if I needed it for the History section, but I plan to use the Economics Online or Quickonomics for the general history.

I will choose https://www.behavioraleconomics.com/resources/mini-encyclopedia-of-be/ambiguity-uncertainty-aversion/ for the limitations section. It's direct, focuses on a specific critique (ambiguity aversion via Ellsberg Paradox), and links to real-world implications (stock market non-participation).

My four external links will be:

  1. History/Origin (Bernoulli & VNM): https://www.economicsonline.co.uk/Competitive_markets/Expected_utility_theory.html
  2. Theory/Importance (VNM axioms): https://quickonomics.com/von-neumann-morgenstern-utility-theorem/
  3. Practical Applications (Portfolio Theory): I need to find a good one. Perhaps a university or regulatory body discussing utility in investments.
    • Search: "utility function in portfolio selection" or "modern portfolio theory utility"
  4. Limitations (Ambiguity Aversion/Ellsberg): https://www.behavioraleconomics.com/resources/mini-encyclopedia-of-be/ambiguity-uncertainty-aversion/

Let's find the third external link for "Practical Applications".
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