SIMILARITY AND PREFERENCES IN THE SPACE OF SIMPLE LOTTERIES

A. Rubinstein's similarity-relation approach to decision making under uncertainty is extended by introducing a new concept of correlated sim ilarity relations. It is shown that every expected utility preference is consistent with the epsilon-difference similarity relation on the p rize space and some correlated similarity relations on the probability space, and that a similarity relation on the prize space and correlat ed similarity relations on the probability space overdetermine the pre ference (in A. Rubinstein's sense).