Preference and Similarity between Alternatives

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DOI:
http://dx.doi.org/10.22029/jlupub-424

Abstract

We discuss how information about choice-relevant differences between alternatives can be revealed from preference information. We provide axiomatic characterisations of two classes of Similarity Revelation Rules: one that allows for different similarity thresholds for different pairs of alternatives, and one in which the threshold is the same for all pairs of alternatives. A third result proves the necessary and sufficient condition for the characterised class of rules to yield a transitive similarity relation. The article concludes with a discussion of the limitations of the analysis and the relationship between transitivity (of preferences) and the choice-relevant similarities between options.

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Rationality, markets, and morals: RMM 5 (2014), 120 - 132

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