Decision-making under risk: Editing procedures based on correlated similarities, and preference overdetermination

Abstract

This paper studies editing procedures based on similarity relations in an expected utility maximization context. It shows that these procedures are compatible both with a family of difference-correlated similarities on the prize space and with a set of families (one for each probability) of ratio-correlated similarity relations on the probability space. In view of the properties satisfied by these families of correlated similarities, it is suggested that Rubinstein's preference overdetermination problem can be avoided.