| Article ID: | iaor19942258 |
| Country: | United States |
| Volume: | 40 |
| Issue: | 4 |
| Start Page Number: | 508 |
| End Page Number: | 515 |
| Publication Date: | Apr 1994 |
| Journal: | Management Science |
| Authors: | Aboudi Ronny, Thon Dominique |
| Keywords: | investment, decision theory: multiple criteria, stochastic processes |
It is known that when the random variables being compared have a uniform probability measure, as is the case when using financial market data, the computation of efficient sets for first- and second-degree dominance can be greatly simplified if majorization conditions are used instead of the dominance definitions. This paper presents an equally efficient technique for third-degree dominance.