Pruning prospects by dominance

Abstract

In general stochastic dominance, it is assumed that decision makers have one of the following characteristics, increasing utility, risk averse, and decreasing risk averse. Actually, however, some decision makers have risk prone or risk neutral attitude. That is, someone who enjoys venture or is a rich man can take risk prone attitude and someone takes indifferent attitude toward risk. In this thesis, procedures for selecting alternatives under risk proneness and under risk neutrality are developed. The method of alternative selection using stochastic dominance which includes nonstochastic dominance is computerized by using Turbo PASCAL.