IDEAS home Printed from https://ideas.repec.org/a/spr/jesaex/v9y2023i2d10.1007_s40881-023-00142-6.html
   My bibliography  Save this article

Violations of first-order stochastic dominance

Author

Listed:
  • Brett Williams

    (AGORA Centre for Market Design, UNSW Business School)

Abstract

I find necessary and sufficient conditions for first-order stochastic dominance (FOSD) violations for choices from a budget line of Arrow securities. Applying this characterization to existing data, I compare FOSD violation rates across a broad set of risk preference elicitation tasks.

Suggested Citation

  • Brett Williams, 2023. "Violations of first-order stochastic dominance," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 9(2), pages 239-251, December.
    • Handle: RePEc:spr:jesaex:v:9:y:2023:i:2:d:10.1007_s40881-023-00142-6
    DOI: 10.1007/s40881-023-00142-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40881-023-00142-6
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s40881-023-00142-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Syngjoo Choi & Shachar Kariv & Wieland M?ller & Dan Silverman, 2014. "Who Is (More) Rational?," American Economic Review, American Economic Association, vol. 104(6), pages 1518-1550, June.
    2. Jose Apesteguia & Miguel A. Ballester, 2018. "Monotone Stochastic Choice Models: The Case of Risk and Time Preferences," Journal of Political Economy, University of Chicago Press, vol. 126(1), pages 74-106.
    3. Matthew Polisson & John K.-H. Quah & Ludovic Renou, 2020. "Revealed Preferences over Risk and Uncertainty," American Economic Review, American Economic Association, vol. 110(6), pages 1782-1820, June.
    4. Charles A. Holt & Susan K. Laury, 2002. "Risk Aversion and Incentive Effects," American Economic Review, American Economic Association, vol. 92(5), pages 1644-1655, December.
    5. Syngjoo Choi & Raymond Fisman & Douglas Gale & Shachar Kariv, 2007. "Consistency, Heterogeneity, and Granularity of Individual Behavior under Uncertainty," Economics Working Papers 0076, Institute for Advanced Study, School of Social Science.
    6. Loomes, Graham, 1991. "Evidence of a New Violation of the Independence Axiom," Journal of Risk and Uncertainty, Springer, vol. 4(1), pages 91-108, January.
    7. Galarza, Francisco, 2009. "Choices under Risk in Rural Peru," MPRA Paper 17708, University Library of Munich, Germany.
    8. Syngjoo Choi & Raymond Fisman & Douglas Gale & Shachar Kariv, 2007. "Consistency and Heterogeneity of Individual Behavior under Uncertainty," American Economic Review, American Economic Association, vol. 97(5), pages 1921-1938, December.
    9. Sarah Jacobson & Ragan Petrie, 2009. "Learning from mistakes: What do inconsistent choices over risk tell us?," Journal of Risk and Uncertainty, Springer, vol. 38(2), pages 143-158, April.
    10. Nathaniel T. Wilcox, 2008. "Stochastic models for binary discrete choice under risk: a critical primer and econometric comparison," Research in Experimental Economics, in: Risk Aversion in Experiments, pages 197-292, Emerald Group Publishing Limited.
    11. Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680, Decembrie.
    12. Gary Charness & Catherine Eckel & Uri Gneezy & Agne Kajackaite, 2018. "Complexity in risk elicitation may affect the conclusions: A demonstration using gender differences," Journal of Risk and Uncertainty, Springer, vol. 56(1), pages 1-17, February.
    13. Chi Wai Yu & Y. Jane Zhang & Sharon Xuejing Zuo, 2021. "Multiple Switching and Data Quality in the Multiple Price List," The Review of Economics and Statistics, MIT Press, vol. 103(1), pages 136-150, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michele Garagnani, 2023. "The predictive power of risk elicitation tasks," Journal of Risk and Uncertainty, Springer, vol. 67(2), pages 165-192, October.
    2. Zachary Breig & Paul Feldman, 2024. "Revealing risky mistakes through revisions," Journal of Risk and Uncertainty, Springer, vol. 68(3), pages 227-254, June.
    3. Andrew Ellis & David J. Freeman, 2024. "Revealing Choice Bracketing," American Economic Review, American Economic Association, vol. 114(9), pages 2668-2700, September.
    4. Friedman, Daniel & Habib, Sameh & James, Duncan & Williams, Brett, 2022. "Varieties of risk preference elicitation," Games and Economic Behavior, Elsevier, vol. 133(C), pages 58-76.
    5. Hans-Martin Gaudecker & Arthur Soest & Erik Wengström, 2012. "Experts in experiments," Journal of Risk and Uncertainty, Springer, vol. 45(2), pages 159-190, October.
    6. Caliari, Daniele, 2023. "Rationality is not consistency," Discussion Papers, Research Unit: Economics of Change SP II 2023-304, WZB Berlin Social Science Center.
    7. Castillo, Marco & Jordan, Jeffrey L. & Petrie, Ragan, 2018. "Children’s rationality, risk attitudes and field behavior," European Economic Review, Elsevier, vol. 102(C), pages 62-81.
    8. Bruns, Selina & Hermann, Daniel & Mußhoff, Oliver, 2022. "Investigating inconsistencies in complex lotteries: The role of cognitive skills of low-numeracy subjects," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 97(C).
    9. Joshua Lanier & Bin Miao & John K.-H. Quah & Songfa Zhong, 2024. "Intertemporal Consumption with Risk: A Revealed Preference Analysis," The Review of Economics and Statistics, MIT Press, vol. 106(5), pages 1319-1333, September.
    10. Thomas Demuynck & John Rehbeck, 2023. "Computing revealed preference goodness-of-fit measures with integer programming," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 76(4), pages 1175-1195, November.
    11. Pawe{l} Dziewulski & Joshua Lanier & John K. -H. Quah, 2024. "Revealed preference and revealed preference cycles: a survey," Papers 2405.08459, arXiv.org.
    12. E. Cettolin & P. S. Dalton & W. J. Kop & W. Zhang, 2020. "Cortisol meets GARP: the effect of stress on economic rationality," Experimental Economics, Springer;Economic Science Association, vol. 23(2), pages 554-574, June.
    13. Friedman, Daniel & Habib, Sameh & James, Duncan & Crockett, Sean, 2018. "Varieties of risk elicitation," Discussion Papers, Research Professorship Market Design: Theory and Pragmatics SP II 2018-501, WZB Berlin Social Science Center.
    14. Marco Castillo & David L. Dickinson & Ragan Petrie, 2017. "Sleepiness, choice consistency, and risk preferences," Theory and Decision, Springer, vol. 82(1), pages 41-73, January.
    15. John D. Hey & Noemi Pace, 2018. "The explanatory and predictive power of non two-stage-probability theories of decision making under ambiguity," World Scientific Book Chapters, in: Experiments in Economics Decision Making and Markets, chapter 6, pages 139-167, World Scientific Publishing Co. Pte. Ltd..
    16. Ferdinand M. Vieider & Peter Martinsson & Pham Khanh Nam & Nghi Truong, 2019. "Risk preferences and development revisited," Theory and Decision, Springer, vol. 86(1), pages 1-21, February.
    17. repec:cup:judgdm:v:16:y:2021:i:5:p:1290-1313 is not listed on IDEAS
    18. Lasse Mononen, 2023. "Computing and comparing measures of rationality," ECON - Working Papers 437, Department of Economics - University of Zurich.
    19. Brañas-Garza, Pablo & Estepa-Mohedano, Lorenzo & Jorrat, Diego & Orozco, Victor & Rascón-Ramírez, Ericka, 2021. "To pay or not to pay: Measuring risk preferences in lab and field," Judgment and Decision Making, Cambridge University Press, vol. 16(5), pages 1290-1313, September.
    20. Chuang, Yating & Schechter, Laura, 2015. "Stability of experimental and survey measures of risk, time, and social preferences: A review and some new results," Journal of Development Economics, Elsevier, vol. 117(C), pages 151-170.
    21. Enrica Carbone & Xueqi Dong & John Hey, 2017. "Elicitation of preferences under ambiguity," Journal of Risk and Uncertainty, Springer, vol. 54(2), pages 87-102, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jesaex:v:9:y:2023:i:2:d:10.1007_s40881-023-00142-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.