Abstract
This note gives a stochastic dominance representation of more optimistic belief in rank dependent expected utility. Applying this observation, we can demonstrate the effect of more optimistic belief on economic decisions and equilibria under risk making comparative static analysis.
Original language | English |
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Pages (from-to) | 275-278 |
Number of pages | 4 |
Journal | Economics Letters |
Volume | 101 |
Issue number | 3 |
DOIs | |
Publication status | Published - 2008 Dec |
Externally published | Yes |
Keywords
- Comparative statics
- Optimistic belief
- Rank dependent expected utility
- Stochastic dominance
ASJC Scopus subject areas
- Finance
- Economics and Econometrics