A New Approach of Stochastic Dominance for Ranking Transformations on the Discrete Random Variable
Abstract: This paper presents some new stochastic dominance (SD) criteria for ranking transformations on a random variable, which is the first time that this is done for transformations under the discrete framework. By using the expected utility theory, the authors first propose a sufficient condition for general transformations by first degree SD (FSD), and further develop it into the necessary and sufficient condition for monotonic transformations. For the second degree SD (SSD) case, they divide the monotonic transformations into increasing and decreasing categories, and further derive their necessary and sufficient conditions, respectively. For two different discrete random variables with the same possible states, the authors obtain the sufficient and necessary conditions for FSD and SSD, respectively. The new SD criteria have the following features: each FSD condition is represented by the transformation functions and each SSD condition is characterized by the transformation functions and the probability distributions of the random variable. This is different from the classical SD approach where FSD and SSD conditions are described by cumulative distribution functions. Finally, a numerical example is provided to show the effectiveness of the new SD criteria.
- Location
-
Deutsche Nationalbibliothek Frankfurt am Main
- Extent
-
Online-Ressource
- Language
-
Englisch
- Bibliographic citation
-
A New Approach of Stochastic Dominance for Ranking Transformations on the Discrete Random Variable ; volume:11 ; number:1 ; year:2017 ; extent:24
Economics / Journal articles. Journal articles ; 11, Heft 1 (2017) (gesamt 24)
- Creator
- DOI
-
10.5018/economics-ejournal.ja.2017-14
- URN
-
urn:nbn:de:101:1-2412130959271.761182536710
- Rights
-
Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
- Last update
-
15.08.2025, 7:30 AM CEST
Data provider
Deutsche Nationalbibliothek. If you have any questions about the object, please contact the data provider.
Associated
Other Objects (12)
A new approach of stochastic dominance for ranking transformations on the discrete random variable
A new approach of stochastic dominance for ranking transformations on the discrete random variable
A new approach of stochastic dominance for ranking transformations on the discrete random variable
A new approach of stochastic dominance for ranking transformations on the discrete random variable
Discrete moments of zeta-functions with respect to random and ergodic transformations
Discrete Moments of Zeta-Functions with respect to random and ergodic transformations
Random discrete structures
Spin Transformations of Discrete Surfaces
Ergodic theory of random transformations
Pruned discrete random samples
Evaluating dominance ranking of PSID incomes by various household attributes
Time-scale transformations of discrete time processes
A new approach of stochastic dominance for ranking transformations on the discrete random variable
A new approach of stochastic dominance for ranking transformations on the discrete random variable
A new approach of stochastic dominance for ranking transformations on the discrete random variable
A new approach of stochastic dominance for ranking transformations on the discrete random variable
Discrete moments of zeta-functions with respect to random and ergodic transformations
Discrete Moments of Zeta-Functions with respect to random and ergodic transformations
Random discrete structures
Spin Transformations of Discrete Surfaces
Ergodic theory of random transformations
Pruned discrete random samples
Evaluating dominance ranking of PSID incomes by various household attributes
Time-scale transformations of discrete time processes
A new approach of stochastic dominance for ranking transformations on the discrete random variable
A new approach of stochastic dominance for ranking transformations on the discrete random variable
A new approach of stochastic dominance for ranking transformations on the discrete random variable
A new approach of stochastic dominance for ranking transformations on the discrete random variable
Discrete moments of zeta-functions with respect to random and ergodic transformations
Discrete Moments of Zeta-Functions with respect to random and ergodic transformations
Random discrete structures
Spin Transformations of Discrete Surfaces
Ergodic theory of random transformations
Pruned discrete random samples
Evaluating dominance ranking of PSID incomes by various household attributes