The standard theory clearly fails. Here we go over some of the assumptions that seem most problematic

Finding Alpha Home

Rubinstein’s aggregation theorem
Milgrom-Stokey’s no-trade theorem (1982)
Grossman-Stiglitz model of informed and uninformed traders (1980)
Kyle’s model of market model (1985) 
Terrance Odean's research on retail trading practices
Goetzmann and Kumar on retail diversification (2005):
Chan, Covrig, and Ng on the Home Bias
von Neumann-Morgenstern Utility
Theory of Risk Aversion
Rabin and Thaler on absurd utility extrapolations (2000)
Easterlin’s Paradox (1974)
Gregg Easterbrook’s The Progress Paradox,
David Myers’s The American Paradox, and
Barry Schwartz’s The Paradox of Choice
Knight and Song on relative vs. absolute wealth and happiness (2006)
Wolfers and Stevenson’s critique of the Easterlin Paradox (2008