Mixtures of Mean-Preserving Contractions
Theoretical Economics
2020-09-22 v3 Probability
Abstract
Given a purely atomic probability measure with support on n points, P, any mean-preserving contraction (mpc) of P, Q, with support on m > n points is a mixture of mpcs of P, each with support on most n points. We illustrate an application of this result in economics.
Cite
@article{arxiv.1905.05157,
title = {Mixtures of Mean-Preserving Contractions},
author = {Joseph Whitmeyer and Mark Whitmeyer},
journal= {arXiv preprint arXiv:1905.05157},
year = {2020}
}
Comments
14 pages