Stochastic Dominance
Overview
Preference Relation
We have a choice set X.
- A preference relation is complete if for every x and y in X,
either {% x \succsim y %} or {% y \succsim x %}
- A preference relation is transitive if {% x \succsim y %}
and {% y \succsim z %} implies that {% x \succsim z %}
Risk
stochastic dominance.
