Almost Stochastic Dominance for Risk-Averse and Risk-Seeking Investors

Xu, Guo and Wing-Keung, Wong and Lixing, Zhu (2013): Almost Stochastic Dominance for Risk-Averse and Risk-Seeking Investors.

Abstract

In this paper we �first develop a theory of almost stochastic dominance for risk-seeking investors to the first three orders. Thereafter, we study the relationship between the preferences of almost stochastic dominance for risk-seekers with that for risk averters.

• Item Type: MPRA Paper
• Language: English
• Keywords: Almost Stochastic Dominance, expected-utility maximization, risk averters, risk seekers.
• Subjects: C - Mathematical and Quantitative Methods > C0 - General > C00 - General; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty; G - Financial Economics > G1 - General Financial Markets > G11 - Portfolio Choice ; Investment Decisions

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