EconPapers    
Economics at your fingertips  
 

Generalized Families of Fractional Stochastic Dominance

Ehsan Azmoodeh and Ozan H\"ur

Papers from arXiv.org

Abstract: Introduced by M\"uller et al. in their seminal paper \cite{muller}, fractional stochastic dominance (SD) offers a nuanced approach to ordering distributions. In this paper, we propose a fundamentally new framework by replacing the fixed parameter $\gamma \in [0,1]$ in fractional SD with a function $\boldsymbol{\gamma}: \mathbb{R} \to [0,1]$. This yields two novel families, multi-fractional stochastic dominance (MFSD) and functional fractional stochastic dominance (FFSD). They enable the ranking of a broader range of distributions and incorporate a more informative utility class, including those with local non-concavities whose steepness varies depending on the location. Furthermore, our framework introduces the concept of partial greediness, which dynamically captures how behaviour of decision makers adapts to changes in wealth. We also extend this framework to encompass almost stochastic dominance. We provide the mathematical foundations of our generalized framework and study how it offers a novel tool for ordering distributions across various settings.

Date: 2023-07, Revised 2025-02
New Economics Papers: this item is included in nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://arxiv.org/pdf/2307.08651 Latest version (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:arx:papers:2307.08651

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().

 
Page updated 2025-03-19
Handle: RePEc:arx:papers:2307.08651