Stochastic dominance with nonadditive probabilities

Decision criteria in risk analysis : an application of stochastic dominance with respect to a function

Unraveling additive from nonadditive effects using genomic relationship matrices.

The application of quantitative genetics in plant and animal breeding has largely focused on additive models, which may also capture dominance and epistatic effects. Partitioning genetic variance into its additive and nonadditive components using pedigree-based models (P-genomic best linear unbiased predictor) (P-BLUP) is difficult with most commonly available family structures. However, the av...

Electricity Procurement for Large Consumers with Second Order Stochastic Dominance Constraints

This paper presents a decision making approach for mid-term scheduling of large industrial consumers based on the recently introduced class of Stochastic Dominance (SD)- constrained stochastic programming. In this study, the electricity price in the pool as well as the rate of availability (unavailability) of the generating unit (forced outage rate) is considered as uncertain parameters. Th...

Stochastic Dominance and Prospect Dominance with Subjective Weighting Functions

Stochastic Dominance (SD) rules are used to divide the sets of all feasible uncertain prospects into efficient and inefficient sets (partial ordering). The SD rules (as well as the mean-variance rule) assume that investors agree on the available distributions of returns. Laboratory experiments with and without real money repeatedly reveal that even if all subjects observe the same pair of cumul...

Bayesian Assessment of Lorenz and Stochastic Dominance using a Mixture of Gamma Densities

Because of their applicability for ordering distributions within general classes of utility and social welfare functions, tests for stochastic and Lorenz dominance have attracted considerable attention in the literature. To date the focus has been on sampling theory tests, with some tests having a null hypothesis that X dominates Y (say), and others having a null hypothesis that Y does not domi...