The mass transfer approach to multivariate discrete first order stochastic dominance: Direct proof and implications

B-Tier
Journal: Journal of Mathematical Economics
Year: 2010
Volume: 46
Issue: 6
Pages: 1222-1228

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Abstract A fundamental result in the theory of stochastic dominance tells that first order dominance between two finite multivariate distributions is equivalent to the property that the one can be obtained from the other by shifting probability mass from one outcome to another that is worse a finite number of times. This paper provides a new and elementary proof of that result by showing that starting with an arbitrary system of mass transfers, whenever the resulting distribution is first order dominated one can gradually rearrange transfers, according to a certain decentralized procedure, and obtain a system of transfers all shifting mass to outcomes that are worse.

Technical Details

RePEc Handle
repec:eee:mateco:v:46:y:2010:i:6:p:1222-1228
Journal Field
Theory
Author Count
1
Added to Database
2026-01-29