Stochastic Dominance under Independent Noise
研究了额外独立背景风险如何影响赌局的随机占优排序，发现背景风险可使按期望排序的彩票实现一阶随机占优，并扩展至二阶随机占优，导出均值-方差偏好的新公理化。
Stochastic dominance is a crucial tool for the analysis of choice under risk. It is typically analyzed as a property of two gambles that are taken in isolation. We study how additional independent sources of risk (e.g., uninsurable labor risk, house price risk) can affect the ordering of gambles. We show that, perhaps surprisingly, background risk can be strong enough to render lotteries that are ranked by their expectation ranked in terms of first-order stochastic dominance. We extend our results to second-order stochastic dominance and show how they lead to a novel and elementary axiomatization of mean-variance preferences.