Revisiting almost second-degree stochastic dominance

Larry Y. Tzeng, Rachel J. Huang, Pai Ta Shih

Research output: Contribution to journalArticlepeer-review

49 Scopus citations


Leshno and Levy [Leshno M, Levy H (2002) Preferred by "all" and preferred by "most" decision makers: Almost stochastic dominance. Management Sci. 48(8):1074-1085] established almost stochastic dominance to reveal preferences for most rather than all decision makers with an increasing and concave utility function. In this paper, we first provide a counterexample to the main theorem of Leshno and Levy related to almost seconddegree stochastic dominance. We then redefine this dominance condition and show that the newly defined almost second-degree stochastic dominance is the necessary and sufficient condition to rank distributions for all decision makers excluding the pathological concave preferences. We further extend our results to almost higher-degree stochastic dominance.

Original languageEnglish
Pages (from-to)1250-1254
Number of pages5
JournalManagement Science
Issue number5
StatePublished - May 2013


  • Almost stochastic dominance
  • Risk aversion
  • Stochastic dominance


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