This fully updated third edition is devoted to the analysis of various Stochastic Dominance (SD) decision rules. It discusses the pros and cons of each of the alternate SD rules, the application of these rules to various research areas like statistics, agriculture, medicine, measuring income inequality and the poverty level in various countries, and of course, to investment decision-making unde…
Concepts similar to stochastic dominance have been known for many years, but the three papers published by Hadar and Russell and Hanoch and Levy in 1969 and by Rothschild and Stiglitz in 19701 paved the way for a new paradigm called stochastic dominance (SD), with hundreds of studies following these three studies. While Hanoch and Levy and Hadar and Russell developed First and Second degree…