Generalized stochastic dominance and bad outcome aversion

Abstract

Incomplete preferences over lotteries on a finite set of alternatives satisfying, besides independence and continuity, a property called bad outcome aversion are considered. These preferences are characterized in terms of their specific multi-expected utility representations (cf. Dubra et al., J Econ Theory, 115:118-133, 2004), and can be seen as generalized stochastic dominance preferences. © 2010 The Author(s).