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Stochastic Dominance Over Correlated Prospects

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  • McCarl, Bruce
  • Hastle, James B.
  • Wilson, James

Abstract

A difficulty occurs in stochastic dominance applications when alternatives are not mutually exclusive and mixed prospects may be formed. Exhaustive examination of all possible mixed prospects is often impractical. In this paper, rules are derived and tested for deciding when and to what extent mixed prospects should be examined.

Suggested Citation

  • McCarl, Bruce & Hastle, James B. & Wilson, James, 1986. "Stochastic Dominance Over Correlated Prospects," 1986 Annual Meeting, July 27-30, Reno, Nevada 278146, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea86:278146
    DOI: 10.22004/ag.econ.278146
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    References listed on IDEAS

    as
    1. Zentner, Robert P. & Greene, Duty D. & Hickenbotham, Terry L. & Eidman, Vernon R., 1981. "Ordinary And Generalized Stochastic Dominance: A Primer," Staff Papers 14184, University of Minnesota, Department of Applied Economics.
    2. Mark J. Cochran & Lindon J. Robison & Weldon Lodwick, 1985. "Improving the Efficiency of Stochastic Dominance Techniques Using Convex Set Stochastic Dominance," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(2), pages 289-295.
    3. Rulon D. Pope & Rod F. Ziemer, 1984. "Stochastic Efficiency, Normality, and Sampling Errors in Agricultural Risk Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(1), pages 31-40.
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