- Title
- Monotone Additive Statistics
- Author(s)
- Xiaosheng Mu Xiaosheng Mu (Princeton University)
- Luciano Pomatto Luciano Pomatto (Caltech)
- Philipp Strack Philipp Strack (Yale University)
- Omer Tamuz Omer Tamuz (Caltech)
- Abstract
- The expectation is an example of a descriptive statistic that is monotone with respect to stochastic dominance, and additive for sums of independent random variables. We provide a complete characterization of such statistics, and explore a number of applications to models of individual and group decision-making. These include a representation of stationary, monotone time preferences, extending the work of Fishburn and Rubinstein (1982) to time lotteries, as well as a characterization of risk-averse preferences over monetary gambles that are invariant to mean-zero background risks.
- Creation Date
- 2021-07
- Section URL ID
- Paper Number
- 2021-36
- URL
- https://uploads.strikinglycdn.com/files/54c7bf63-e4de-41fc-b585-64a53286b247/MAS.pdf
- File Function
- Jel
- D81
- Keyword(s)
- statistics, decision-making
- Suppress
- false
- Series
- 13