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Note on lexicographic‐order preservation and stochastic dominance
Author(s) -
Lavalle Irving H.,
Fishburn Peter C.
Publication year - 1999
Publication title -
journal of multi‐criteria decision analysis
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.462
H-Index - 47
eISSN - 1099-1360
pISSN - 1057-9214
DOI - 10.1002/(sici)1099-1360(199903)8:2<71::aid-mcda232>3.0.co;2-g
Subject(s) - lexicographical order , stochastic dominance , dominance (genetics) , transitive relation , mathematical economics , generalization , mathematics , conjecture , order (exchange) , economics , econometrics , discrete mathematics , combinatorics , biochemistry , finance , gene , mathematical analysis , chemistry
This note concerns two issues left unresolved in our study of lexicographic‐order preservation and stochastic dominance in settings where preferences are represented by utility vectors, ordered lexicographically, and judgements emerge as matrices that premultiply utility vectors in expected utility sums. First, a generalization of the ‘Conjecture Σ’, which implied transitivity of a stochastic dominance relation under non‐vacuous resolution‐level information, is proved. Second, this paper comments on using resolution‐level information in higher as well as in first degree stochastic dominance analysis. Copyright © 1999 John Wiley & Sons, Ltd.