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Rules for Ordering Uncertain Prospects
Josef Hadar,William R Russell +1 more
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This article is published in The American Economic Review.The article was published on 1969-01-01 and is currently open access. It has received 1748 citations till now.read more
Citations
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Selling to Overconfident Consumers
TL;DR: In this paper, the authors show that consumers may overestimate the precision of their demand forecasts, which creates an incentive for both monopolists and competitive firms to offer tariffs with included quantities at zero marginal cost, followed by steep marginal charges.
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Multi-period mean-variance analysis: toward a general theory of portfolio choice*
TL;DR: In this article, the mean-variance approach was applied to the average compound return in the stationary two-asset case with encouraging results: the set of efficient portfolios in any one period was found to decrease as the horizon N increases and to converge to a single efficient sequence with attractive long-run properties.
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Simplifying the Choice between Uncertain Prospects Where Preference is Nonlinear
TL;DR: The authors make analytical progress in reducing or avoiding two practical difficulties in using preference or utility theory in the analysis of decisions involving uncertainty: assessing the preference curve, and doing calculations with the resultant curve, which may not have an analytically-convenient functional form.
Posted Content
Gini's Mean difference: a superior measure of variability for non-normal distributions
TL;DR: In this article, the authors argue that Gini's Mean Difference (GMD), an alternative index of variability, shares many properties with the variance, but can be more informative about the properties of distributions that depart from normality.
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Testing for Second-Order Stochastic Dominance of Two Distributions
TL;DR: In this paper, a statistical test has been constructed to test, for some x ∈ [a, b], against the hypothesis, for all x ∆ [a and b], where a and b are any two real numbers, and has an upper bound α on the asymptotic size.
References
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Book
Theory of Games and Economic Behavior
TL;DR: Theory of games and economic behavior as mentioned in this paper is the classic work upon which modern-day game theory is based, and it has been widely used to analyze a host of real-world phenomena from arms races to optimal policy choices of presidential candidates, from vaccination policy to major league baseball salary negotiations.
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Admissibility and Measurable Utility Functions
James P. Quirk,Rubin Saposnik +1 more
Book ChapterDOI
Ordered Families of Distributions
TL;DR: In this article, a comparison is made of several definitions of ordered sets of distributions, some of which were introduced earlier by the author [7], [8] and by Rubin [10], and the results are applied to obtaining tests that give a certain guaranteed power with a minimum number of observations.
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Dynamic Inventory Policy with Varying Stochastic Demands
TL;DR: In this article, a dynamic inventory model is formulated in which the demand distributions may change from period to period, and the optimal policy at each stage is characterized by a single critical number which also could vary in successive periods.