Aufsatz(elektronisch)#1Juli 1992
Risk Averse Decisions in Business Planning
In: Decision sciences, Band 23, Heft 4, S. 1003-1008
ISSN: 1540-5915
ABSTRACTSecond‐order stochastic dominance is used to determine preferences among various investments for any risk‐averse decision maker. On the other hand, when faced with choosing between different insurance policies or disaster plans, a risk‐averse decision maker should use a type of stochastic dominance called variability ordering. In this situation, second‐order stochastic dominance has been used in previous research and is incorrect.