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

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  • Guo, Xu
  • Wong, Wing-Keung
  • Zhu, Lixing

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.

Suggested Citation

  • Guo, Xu & Wong, Wing-Keung & Zhu, Lixing, 2014. "Almost Stochastic Dominance for Risk-Averse and Risk-Seeking Investors," MPRA Paper 53347, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:53347
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    References listed on IDEAS

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    More about this item

    Keywords

    Almost Stochastic Dominance; expected-utility maximization; risk averters; risk seekers.;
    All these keywords.

    JEL classification:

    • C0 - Mathematical and Quantitative Methods - - General
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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