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RELATIONS BETWEEN STOCHASTIC ORDERINGS AND GENERALIZED STOCHASTIC PRECEDENCE
Published online by Cambridge University Press: 27 April 2015
Abstract
The concept of stochastic precedence between two real-valued random variables has often emerged in different applied frameworks. In this paper, we analyze several aspects of a more general, and completely natural, concept of stochastic precedence that also had appeared in the literature. In particular, we study the relations with the notions of stochastic ordering. Such a study leads us to introducing some special classes of bivariate copulas. Motivations for our study can arise from different fields. In particular, we consider the frame of Target-Based Approach in decisions under risk. This approach has been mainly developed under the assumption of stochastic independence between “Prospects” and “Targets”. Our analysis concerns the case of stochastic dependence.
- Type
- Research Article
- Information
- Probability in the Engineering and Informational Sciences , Volume 29 , Issue 3 , July 2015 , pp. 329 - 343
- Copyright
- Copyright © Cambridge University Press 2015
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