Stochastic Dominance Without Transitive Preferences

Peter C. Fishburn
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Peter C. Fishburn: Pennsylvania State University

Management Science, 1978, vol. 24, issue 12, 1268-1277

Abstract: Traditional definitions of stochastic dominance assume that the decision agent's preference-or-indifference relation on outcomes of risky decisions is transitive. This paper proposes a stochastic dominance relation for the comparison of risky decisions that is applicable to any complete and reflexive preference-or-indifference relation, or to any asymmetric preference relation. The new dominance relation possesses a number of intuitively desirable properties and is equivalent to the usual stochastic dominance relation when preferences are transitive.

Keywords: probability: stochastic model applications; probability: distribution comparisons; utility/preference: applications (search for similar items in EconPapers)
Date: 1978
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:24:y:1978:i:12:p:1268-1277

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