Check if lottery A stochastically dominates lottery B. First-order stochastic dominance (FSD): A dominates B if F_A(x) ≤ F_B(x) for all x (preferred by all monotone utility functions). Second-order stochastic dominance (SSD): ∫F_A(t)dt ≤ ∫F_B(t)dt (preferred by all risk-averse utility functions). Returns boolean indicating dominance. Use for portfolio comparison and welfare ranking without specifying utility functions.
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CDF of lottery A as [[x1, F_A(x1)], [x2, F_A(x2)], ...]
22 elements[[0, 0], [5, 0.3], [10, 0.7], [15, 1]]CDF of lottery B as [[x1, F_B(x1)], [x2, F_B(x2)], ...]
22 elements[[0, 0], [5, 0.5], [10, 0.9], [15, 1]]Order of dominance (1 for FSD, 2 for SSD)
1, 2 1