Because of the anomalies pointed out by Kahneman and Tversky, the expected utility theory is not a useful tool to help us organize our thinking about economic decision making under conditions of uncertainty.

Question

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Despite the anomalies pointed out by Kahneman and Tversky, expected utility theory remains a foundational tool in economics for understanding decision-making under uncertainty. Their work introduced behavioral insights that complement, rather than invalidate, the expected utility framework by highlighting systematic deviations in human behavior from the predictions of expected utility theory.

Because of the Anomalies Pointed Out by Kahneman and Tversky