Comparison of probability measures: Dominance of the third degree

Comparison of probability measures: Dominance of the third degree

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Article ID: iaor20052260
Country: Netherlands
Volume: 26
Issue: 5
Start Page Number: 237
End Page Number: 245
Publication Date: Jun 2000
Journal: Operations Research Letters
Authors:
Abstract:

This note provides necessary and sufficient conditions for third-degree stochastic dominance between the probability measures on a finite grid of n points. Verifying these conditions involve n linear and n quadratic inequalities; the arithmetic operation of division is not required. The results are compared with those of Fishburn and Lavalle, and Milne and Neave. Finally, the solution to an open problem in Fishburn and Lavalle is presented.

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