Monotone Additive Statistics

Xiaosheng Mu, Luciano Pomatto, Philipp Strack and Omer Tamuz
Additional contact information
Xiaosheng Mu: Princeton University
Luciano Pomatto: Caltech
Philipp Strack: Yale University
Omer Tamuz: Caltech

Working Papers from Princeton University. Economics Department.

Abstract: The expectation is an example of a descriptive statistic that is monotone with respect to stochastic dominance, and additive for sums of independent random variables. We provide a complete characterization of such statistics, and explore a number of applications to models of individual and group decision-making. These include a representation of stationary, monotone time preferences, extending the work of Fishburn and Rubinstein (1982) to time lotteries, as well as a characterization of risk-averse preferences over monetary gambles that are invariant to mean-zero background risks.

Keywords: statistics; decision-making (search for similar items in EconPapers)
JEL-codes: D81 (search for similar items in EconPapers)
Date: 2021-07
New Economics Papers: this item is included in nep-upt
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pri:econom:2021-36

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