Stochastic Dominance MWG Definition 6 D 1: The distribution FO first order stochastically dominates G( if for every nondecreasing function u:R→ we have ∫(x)r(x)≥∫(x)G(x) Proposition 6 D 1: The distribution of monetary payoffs F( stochastically dominates the distribution G( if and only if F(x)≤G(x) for everyⅩ Assume that F( stochastically dominates G(but F(x)>G(), for some value of X denoted x, 1. e F()>G()Stochastic Dominance MWG Definition 6.D.1: The distribution F(.) first order stochastically dominates G(.) if for every nondecreasing function u :    we have  uxdFx   uxdGx Proposition 6.D.1: The distribution of monetary payoffs F(.) stochastically dominates the distribution G(.) if and only if Fx  Gx for every X. Assume that F(.) stochastically dominates G(.) but Fx  Gx , for some value of x denoted  x , i.e. F  x  G  x