Stochastic dominance representation of optimistic belief: Theory and applications

Yusuke Osaki and John Quiggin ()

Economics Letters, 2008, vol. 101, issue 3, pages 275-278

Abstract: This note gives a stochastic dominance representation of more optimistic belief in rank dependent expected utility. Applying this observation, we can demonstrate the effect of more optimistic belief on economic decisions and equilibria under risk making comparative static analysis.

Keywords: Comparative; statics; Optimistic; belief; Rank; dependent; expected; utility; Stochastic; dominance (search for similar items in EconPapers)
Date: 2008

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Persistent link: http://EconPapers.repec.org/RePEc:eee:ecolet:v:101:y:2008:i:3:p:275-278

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