A Note on First Degree Stochastic Dominance

January 1978 | Article

A Note on First Degree Stochastic Dominance

Lars Peter Hansen, C.A. Holt, D. Peled

A link is established between stochastic dominance and a different dominance relationship which we call pointwise dominance. This provides the basis for making several comparisons of expected values of non-decreasing functions of random variables. We discuss economic problems for which the application of stochastic dominance results depends on this link.

@article{hhp:1978,
  title={A Note on First Degree Stochastic Dominance},
  author={Hansen, Lars Peter and Holt, Charles A and Peled, Dan},
  journal={Economics Letters},
  volume={1},
  number={4},
  pages={315--319},
  year={1978},
  publisher={Elsevier}
}