Our paper contributes to the literature by extending the theory of the mean-variance (MV) rules for both risk averters and risk lovers to the MV rule for investors with reverse S-shaped utility. To do so, we first introduce the definition of the MV rule for investors with reverse S-shaped...

In this paper, we first develop some properties to state the relationships between the central moments and stochastic dominance for both the general utility functions and the polynomial utility functions. This leads to draw preferences of both risk averters and risk seekers on their choices of...

In this paper, we propose the use of new stochastic dominance tests to achieve a more robust analysis of relative welfare levels in the study of income distributions. In particular, we propose applying the theory of descending stochastic dominance to enrich results that are obtained using the...

In this paper, we develop some theories related to relationships between central moments, stochastic dominance (SD) and expected utility. The first part of our discussion focus on the relationship between central moments, different order integrals and stochastic dominance as well as relationship...

To overcome the limitations of the traditional approach which uses linear causality to examine whether the supply-leading and demand-following theories hold. As certain countries will be found not to follow the theory by using the traditional approach, this paper first suggests using all the...

In this paper, we first develop some properties to state the relationships among central moments, stochastic dominance (SD), risk-seeking stochastic dominance (RSD), and integrals for the general utility functions and the polynomial utility functions of both risk averters and risk seekers. We...