Majority Voting on Risky Investments.
PENNSYLVANIA STATE UNIV UNIVERSITY PARK COLL OF BUSINESS ADMINISTRATION
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It is assumed that each member of a voting group has an increasing von Neumann-Morgenstern utility function on the real line, but nothing further about each function is presumed. In this setting, necessary and sufficient conditions are given for simple majorities between continuous risky decisions to be transitive. The conditions are based in part on notions of convex stochastic dominance. The case where each utility function is assumed to be increasing and strictly concave is also examined. Author
- Economics and Cost Analysis
- Operations Research