Time Dominance Efficiency Analysis
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- Author(s): STEINAR EKERN
- Published: Apr 30, 2012
- Pages: 1023-1033
- DOI: 10.1111/j.1540-6261.1981.tb01073.x
Building on the stochastic dominance framework, time dominance efficiency analysis provides similar rules for a partial ordering of temporal prospects. Time dominance does not require any quantitative information about temporal preferences for screening decision alternatives according to their net present values. A binary time dominance proposition extends recent sufficient conditions and adds necessity. The paper's main contribution is the development of set time dominance. By eliminating binary undominated projects which no one would choose, set time dominance minimizes time efficient sets without imposing further preference assumptions.