Almost stochastic dominance for risk averters and risk seeker

Xu Guo, Wing Keung Wong*, Lixing Zhu

*Corresponding author for this work

Research output: Contribution to journalJournal articlepeer-review

15 Citations (Scopus)

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 ASD (GASD). We then briefly discuss the advantages and disadvantages of ASD and GASD.

Original languageEnglish
Pages (from-to)15-21
Number of pages7
JournalFinance Research Letters
Volume19
DOIs
Publication statusPublished - Nov 2016

Scopus Subject Areas

  • Finance

User-Defined Keywords

  • Almost stochastic dominance
  • Expected-utility maximization
  • Generalized almost stochastic dominance
  • Moments
  • Risk averters
  • Risk seekers

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