New study reveals how to make better decisions under risk!
The study shows that when comparing random options with the same average outcome, rules based on how much risk you're willing to take and higher-degree stochastic dominance give the same results. This means that if everyone prefers less risk as they gain more money, they will all agree on which option is better. The researchers found that this holds true for higher levels of risk aversion as well, as long as certain conditions about the options being compared are met.