Note on lexicographic-order preservation and stochastic dominance

Note on lexicographic-order preservation and stochastic dominance

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Article ID: iaor2001919
Country: United Kingdom
Volume: 8
Issue: 2
Start Page Number: 71
End Page Number: 73
Publication Date: Mar 1999
Journal: Journal of Multi-Criteria Decision Analysis
Authors: ,
Abstract:

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 dominanace analysis.

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