A Behavioral Characterization of the Likelihood Ratio Order

Maximilian Mihm and Lucas Siga

American Economic Review: Insights, 2021, vol. 3, issue 3, 353-66

Abstract: It is well known that stochastic dominance is equivalent to a unanimity property for monotone expected utilities. For lotteries over a finite set of prizes, we establish an analogous relationship between likelihood ratio dominance and monotone betweenness preferences, which are an important generalization of expected utility.

JEL-codes: D11 D44 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1257/aeri.20200408

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