Characterization of Stochastic Dominance for Discrete Random Variable

Jean-Michel Courtault (1) , Bertrand Crettez (2) , Naïla Hayek (3)

1 CEPN - Centre d'Economie de l'Université Paris Nord (ancienne affiliation)
2 LIBRE - Laboratoire interdisciplinaire bisontin de recherches économiques
3 Marin Mersenne - Pour les Mathématiques, l'Informatique et l'Interdisciplinarité

Available characterizations of the various notions of stochastic dominance concern continuous random variables. Yet, discrete random variables are often used either in pedagogical presentations of stochastic dominance or in experimental tests of this notion. This note provides complete characterizations of the various notions of stochastic dominance for discrete random variables.

Mots clés: Stochastic Dominance; Discrete Random Variables

Domaines: Economies et finances

Jean-Michel Courtault, Bertrand Crettez, Naïla Hayek. Characterization of Stochastic Dominance for Discrete Random Variable. 2006, pp.10. ⟨halshs-00446413⟩