Page 42-44, Non Linear Preference, "The money-pump concept also reveals a narrow perspective on how choice might be based on preferences, and perhaps a lack of imagination in dealing with cyclic patterns. Although there is no transparent way to make a sensible choice from {p,q,r} when p>q>r>p, nothing prevents a person from considering preferences over the set of convex combinations of p, q, and r. And, if there is a combination in the set, then that persons has an ex ante maximally preferred alternative. As first shown in Kreweras (1961), this indeed can be the case, and we shall consider it later as part of the SSB theory."

Here is a modern paper addressing some of these issues: http://hal.archives-ouvertes.fr/docs/00/08/43/90/PDF/B06008.pdf