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 ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month, and much more.