Similarity, Uncertainty and Time - Tversky (1969) Revisited

A model of choice building on the approach outlined in Tversky (1969) is presented. In this model decisions are based on comparisons regarding the similarity or dissimilarity of attributes across alternatives. This model explains a number of anomalies observed when risky alternatives are to be played once. The model also explains anomalies observed under repeat play conditions as well as those that occur when the options are intertemporal, as opposed to risky, prospects.