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Laws of large numbers for stochastic orders

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Abstract

We establish laws of large numbers for comparing sums of i.i.d. random variables in terms of stochastic dominance. Our results shed new light on a classic question, raised first by Samuelson (1963), on the relation between expected utility, risk aversion, and the aggregation of independent risks. In the context of statistical experiment...More

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Mu Xiaosheng
Mu Xiaosheng
Pomatto Luciano
Pomatto Luciano
Strack Philipp
Strack Philipp
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