In this paper, we develop some stochastic dominance theorems for the location and scale family and linear combinations of random variables and for risk lovers as well as risk averters that extend results in Hadar and Russell (1971) and Tesfatsion (1976). The results are discussed and applied to decision-making.
- Ascending stochastic dominance
- descending stochastic dominance
- risk lovers
- risk averters
- utility function