Master Second Order Stochastic Dominance (SOSD)

[@ioasisss]

I'm strugging first year PhD micro and you are saving my life

[@InCaseofEconStruggles]

I’m so glad this is helping you!

[@shangyigao]

very clear!

[@InCaseofEconStruggles]

I’m glad it was helpful thank you for leaving a comment!

[@tajinderpalmultani4732]

Great video, thank you !

[@InCaseofEconStruggles]

I’m so glad it was helpful thank you for leaving the comment!

[@benjaminkjaerhansen4733]

I get the intuition behind SOSD, but I don't get the definition because F's area under the curve is bigger G's area under the curve after x=20, can you explain why the definition is still true.

[@InCaseofEconStruggles]

Remember that it’s the cumulative area under F versus the cumulative area under G. I do have a mistake where my integrals should start at - infinity not at 0. Starting at x=20 the cumulative difference in areas starts shrinking but the cumulative area under G is always greater than or equal to the cumulative area under F. Does that help?

[@benjaminkjaerhansen4733]

It does, thank you very much.😄

[@InCaseofEconStruggles]

@benjaminkjaerhansen4733 awesome I’m glad that helps! Great question and glad the video was helpful!