Eeckhoudt, Louis; Schlesinger, Harris; Tsetlin, Ilia - In: Journal of Economic Theory 144 (2009) 3, pp. 994-1003
Consider a simple two-state risk with equal probabilities for the two states. In particular, assume that the random wealth variable dominates via ith-order stochastic dominance for i=M,N. We show that the 50-50 lottery dominates the lottery via (N+M)th-order stochastic dominance. The basic idea...
