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Rules for Ordering Uncertain Prospects

Josef Hadar, +1 more
- 01 Jan 1969 - 
- Vol. 59, Iss: 1, pp 25-34
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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.

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Citations
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Deterministic transformations of random variables and the comparative statics of risk

TL;DR: In this paper, a general class of deterministic transformations that can be interpreted as changes in risk are identified, and a particular subclass of these transformations, termed simple transformations, is shown to be well suited for comparative static analyses.
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Comparing Risks by Acceptance and Rejection

TL;DR: In this paper, the authors modify the stochastic dominance requirement by taking into account the status quo (given by the current wealth) and the possibility of rejecting gambles, and by comparing rejections that are substantive (i.e., uniform over wealth levels or over utilities).
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A Generalized Measure of Riskiness

TL;DR: The empirical results indicate that the generalized measure of riskiness is able to rank equity portfolios based on their expected returns per unit of risk and hence yields a more efficient strategy for maximizing expected return of the portfolio while minimizing its risk.
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Stochastic Dominance Tests for Decreasing Absolute Risk Aversion. I. Discrete Random Variables

R. G. Vickson
- 01 Aug 1975 - 
TL;DR: In this article, a type of stochastic dominance, called DSD, which is denned by the utility functions having decreasing absolute risk-aversion is discussed, and sufficient conditions for DSD are presented for discrete random variables which, after the possible addition of points of zero probability, are concentrated on finitely many equally-spaced points.
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.
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.