Almost Stochastic Dominance for Risk Averters and Risk Seekers
17 Pages Posted: 11 Sep 2014 Last revised: 27 May 2015
Date Written: May 27, 2015
Abstract
In this paper we first extend the theory of almost stochastic dominance (ASD) (for risk averters) to include the ASD for risk-seeking investors. We then study the relationship between ASD for risk seekers and ASD for risk averters. Recently, Tsetlin, et al. (2015) develop the theory of generalized almost stochastic dominance (GASD). We then briefly discuss the advantages and disadvantages of ASD and GASD.
Keywords: Almost Stochastic Dominance, generalized almost stochastic dominance, expected-utility maximization, risk averters, risk seekers, moments
JEL Classification: C00, D81, G11
Suggested Citation: Suggested Citation