存在不確定下的幾乎隨機優越

This paper develops almost stochastic dominance in terms of ambiguity. Previous papers have applied the concept of stochastic dominance to rank prospects with uncertain payoff distributions (i.e., ambiguous prospects). However, there exist cases that decision makers apparently prefer one ambiguous prospect to the other, which cannot be revealed by the analogous stochastic dominance rules defined on ambiguity. By employing a smooth ambiguity aversion model, we formally define almost first- and second-degree stochastic dominance in terms of ambiguity and propose corresponding decision rules. Finally, we provide applications of our results to an intertemporal effort decision to reduce ambiguity.