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<li><p>preference relation has 6 <em>axioms of utility theory</em></p>
<ol class="arabic simple">
<li><p><em>orderability</em> - A&gt;B, A~B, or A&lt;B</p></li>
<li><p><em>transitivity</em></p></li>
<li><p><em>continuity</em></p></li>
<li><p><em>substitutability</em> - can do algebra with preference eqns</p></li>
<li><p><em>monotonicity</em> - if A&gt;B then must prefer higher probability of A than B</p></li>
<li><p><em>decomposability</em> - 2 consecutive lotteries can be compressed into single equivalen