Operational asymptotic stochastic dominance

Rachel J. Huang, Larry Tzeng, Jr Yan Wang, Lin Zhao

Research output: Contribution to journalArticlepeer-review

3 Scopus citations


Levy (2016) proposes asymptotic first-degree stochastic dominance as a distribution ranking criterion for all non-satiable decision makers with infinite investment horizons. Given Levy's setting, this paper defines and offers the equivalent distributional conditions for asymptotic second-degree stochastic dominance, as well as operational asymptotic first- and second-degree stochastic dominance. Interestingly, the operational asymptotic stochastic dominance provides a full rank over assets with lognormal returns and different means. Empirical applications show that our conditions can be readily implemented in practice.

Original languageEnglish
Pages (from-to)312-322
Number of pages11
JournalEuropean Journal of Operational Research
Issue number1
StatePublished - 1 Jan 2020


  • Almost stochastic dominance
  • Asymptotic stochastic dominance
  • Long-run investment
  • Operational asymptotic stochastic dominance
  • Utility theory


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