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Handbook of the Economics of Risk and Uncertainty
book

Handbook of the Economics of Risk and Uncertainty

by Mark Machina, W. Kip Viscusi
November 2013
Beginner content levelBeginner
896 pages
35h 10m
English
North Holland
Content preview from Handbook of the Economics of Risk and Uncertainty
The Theory of Risk and Risk Aversion
129
Other forms of stochastic dominance have imposed restriction on A
u
(x). DARA sto-
chastic dominance, for instance, considers decision makers for whom u
(x) 0, u (x) 0
and A
u
(x) 0. The necessary and sufficient conditions for DARA stochastic dominance
have not been characterized in a simple way. It is known, however, that DARA and third
degree stochastic dominance are equivalent when the means of F(x) and G(x) are equal
to one another. Fishburn and Vickson (1978) and Liu and Meyer (2012) demonstrate this.
Diamond and Stiglitz (1974) when defining mean utility preserving spreads and Meyer
(1977) when ...
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Publisher Resources

ISBN: 9780444536853