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General Stochastic Dominance Rules

  • Iltae KimEmail author
  • Suyeol Ryu
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Abstract

This chapter explores the development of economic theory incorporating uncertainty and the measures of risk and risk aversion and examines two main topics in the analysis of choice under uncertainty. One is to find selection rules governing the choice behavior under uncertainty, and the other is to analyze the comparative static effects on the choice made by an economic agent when a given random situation changes into another. General stochastic dominance (SD) orders play an important role in this comparative static analysis.

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© Springer Nature Singapore Pte Ltd. 2020

Authors and Affiliations

  1. 1.Department of EconomicsChonnam National UniversityBuk-gu, GwangjuKorea
  2. 2.Department of EconomicsAndong National UniversityAndong, Gyeongsangbuk-doKorea

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