How to determine if a finite distribution is superior to - i.e. first order dominates - another is a fundamental problem with many applications in economics, finance, probability theory and statistics. Nevertheless, little is known about how to efficiently check first order dominance in two or more dimensions. Utilizing that this problem can be formulated as a transportation problem having a special structure we provide a stronger characterization of multivariate first order dominance and develop a linear time complexity checking algorithm for the bivariate case.
|Status||Udgivet - jun. 2015|
Bibliografisk notePrevious version: Discussion Papers on Business and Economics, SDU, No. 9/2013. May 2
- Multivariate first order dominance
- Usual stochastic order
- Network problem
- Checking algorithm