Stochastic Dominance and Uncertain Price Prospects
作者： E. Kwan Choi , Stanley R. Johnson
DOI: 10.2307/1059583
关键词: Economic surplus 、 Compensating variation 、 Income risk 、 Stochastic dominance 、 Income elasticity of demand 、 Equivalent variation 、 Economics 、 Microeconomics
摘要: This paper develops rules for ordering uncertain price prospects. For consumers with identical ordinal preferences, we propose stochastic dominance based on equivalent variation (EV). The second-degree (SSD) rule the induced distributions of EV yields a unanimous ranking among income risk averters. SSD consumer surplus or compensating provides valid averters if elasticity demand is zero. Risk averse different preferences cannot have We delineate two classes that opposing rankings prospects same mean.
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