Increases in risk and demand for a risky asset

Alain Chateauneuf (1, 2) , Ghizlane Lakhnati (3)

1 CES - Centre d'économie de la Sorbonne
2 PSE - Paris School of Economics
3 National School of Applied Sciences

We first prove the noteworthy fact that Central Dominance with m=1 (CD1), introduced by Gollier (1995), is a particular case of Second order Stochastic Dominance. We then introduce a new tractable class of dominance that we name Relative order and we prove that this class is a strict subclass of CD1. Finally, we show that some known classes of dominance are particular cases of our new class of dominance.

Mots clés: dominance

Domaines: Economies et finances

Alain Chateauneuf, Ghizlane Lakhnati. Increases in risk and demand for a risky asset. Mathematical Social Sciences, 2015, 75, pp.44-48. ⟨10.1016/j.mathsocsci.2015.02.005⟩. ⟨hal-01161663⟩