The lambda-calculus with multiplicities is a refinement of the lazy la
mbda-calculus where the argument in an application comes with a multip
licity, which is an upper bound to the number of its uses. This introd
uces potential deadlocks in the evaluation. We study the discriminatin
g power of this calculus over the usual lambda-terms. We prove in part
icular that the observational equivalence induced by contexts with mul
tiplicities coincides with the equality of Levy-Longo trees associated
with lambda-terms. This is a consequence of the characterization we g
ive of the corresponding observational precongruence, as an intensiona
l preorder involving eta-expansion, namely, Ong's lazy Plotkin-Scott-E
ngeler preorder. (C) 1996 Academic Press, Inc.