In this paper, we first state some well-known problems including the Friedman-Savage paradox raised by Friedman and Savage (1948) who wonder why individuals would like to buy insurance as well as buy lottery tickets. To provide solutions to the problems, we first use the idea from Fishburn and...

In this paper we first extend the theory of almost stochastic dominance (ASD) (for risk averters) to include the ASD for risk-seeking investors. We then study the relationship between ASD for risk seekers and ASD for risk averters. Recently, Tsetlin, et al. (2015) develop the theory of...