Dominance Relations Among Standardized Variable
AbstractThis paper examines stochastic dominance relations among discrete random variables defined on a common integer domain. While these restrictions are minimal, they lead both to new theoretical results and to simpler proofs of existing ones. The new results, obtained for dominance criteria of any degree, generalize an SSD result of Rothschild -Stiglitz to describe how for any dominance criterion a dominated variable is equal in distribution to a dominated variable plus perturbation terms. If the variables are comparable under FSD the perturbations are downward shift terms, while under SSD (TSD) all but two (three) of the perturbations are zero mean disturbance terms (noise). Under SSD the remaining perturbations are shift terms and under TSD noise and shift terms. However, under either SSD or TSD these remaining terms are identically zero if the variables to be compared have equal means. The paper also finds new proofs of well known results relating dominance criteria to preference.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Queen's University, Department of Economics in its series Working Papers with number 877.
Length: 24 pages
Date of creation: Feb 1993
Date of revision:
Other versions of this item:
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- L68 - Industrial Organization - - Industry Studies: Manufacturing - - - Appliances; Furniture; Other Consumer Durables
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Chakravarty, Satya R. & Zoli, Claudio, 2012. "Stochastic dominance relations for integer variables," Journal of Economic Theory, Elsevier, vol. 147(4), pages 1331-1341.
- Miller-Hooks, Elise & Mahmassani, Hani, 2003. "Path comparisons for a priori and time-adaptive decisions in stochastic, time-varying networks," European Journal of Operational Research, Elsevier, vol. 146(1), pages 67-82, April.
- Li, Xiaoming, 2008. "Demand evolution in stochastic inventory systems: Riskiness increase," International Journal of Production Economics, Elsevier, vol. 116(2), pages 182-189, December.
- Dong, Lingxiu & Kouvelis, Panos & Su, Ping, 2013. "Global facility network design in the presence of competition," European Journal of Operational Research, Elsevier, vol. 228(2), pages 437-446.
- Seifert, Ralf W. & Thonemann, Ulrich W. & Sieke, Marcel A., 2006. "Integrating direct and indirect sales channels under decentralized decision-making," International Journal of Production Economics, Elsevier, vol. 103(1), pages 209-229, September.
- Dong, Lingxiu & Kouvelis, Panos & Su, Ping, 2014. "Operational hedging strategies and competitive exposure to exchange rates," International Journal of Production Economics, Elsevier, vol. 153(C), pages 215-229.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Babcock).
If references are entirely missing, you can add them using this form.