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Dominance Concepts in Random Outcomes

  • Yoo-Ro Lee
  • Antonie Stam
  • Po-Lung Yu
Part of the International Centre for Mechanical Sciences book series (CISM, volume 289)

Abstract

As a way to approach decision making under risk or uncertainty, four dominance concepts — utility dominance, stochastic dominance, mean-variance dominance, and probability dominance — are reviewed. The characteristic features, the relative merits and shortcomings of these approaches are discussed. Main results and relationships among them are stated. The nondominated set of Ω (a set of random variables) is defined according to different dominance criteria, and interrelationships among them are discussed.

Keywords

Utility Function Risk Aversion Portfolio Selection Stochastic Dominance Uncertain Outcome 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Wien 1985

Authors and Affiliations

  • Yoo-Ro Lee
    • 1
  • Antonie Stam
    • 1
  • Po-Lung Yu
    • 1
  1. 1.School of BusinessUniversity of KansasUSA

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