Weighted Almost Stochastic Dominance: Revealing the Preferences of Most Decision Makers in the St. Petersburg Paradox

Chin Hon Tan ()
Additional contact information
Chin Hon Tan: Department of Industrial and Systems Engineering, National University of Singapore, Singapore 117576

Decision Analysis, 2015, vol. 12, issue 2, 74-80

Abstract: There are instances where “most” individuals prefer one prospect over another in practice, but such preferences are not revealed by conventional stochastic dominance rules. Almost stochastic dominance aims to reveal such preferences. However, almost stochastic dominance does not reveal the preferences observed in the St. Petersburg paradox. In this paper, we generalize the conditions of almost stochastic dominance by introducing a weighting function and illustrate how our proposed condition reveals the preferences of most individuals in the St. Petersburg paradox.

Keywords: stochastic dominance; almost stochastic dominance; St. Petersburg paradox; utility; preference (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://dx.doi.org/10.1287/deca.2014.0310 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ordeca:v:12:y:2015:i:2:p:74-80

Access Statistics for this article

More articles in Decision Analysis from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().