Stochastic Dominance

Any post that describes a decision algorithm as “[s]exy sounding enough to be used in a pickup line, yet powerful enough to cut through the cognitive biases” demands a repost.  Maurice Ewing’s article on using stochastic dominance as a decision making tool provides a way to choose between options.  It is similar to the fantasy football strategy of choosing players based, not on their total point potential, but on how they compare to other available players at their position.  All great quarterbacks will score similar points, but a standout running back may score twice as many points as his nearest competitor.  Similarly, a job offer that is similar to others in most areas but vastly superior in one area may be the best choice.

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