In this note, we further study the properties of excess wealth (or right spread) order and the location independent riskier order. It is proved that if X is less variable than Y according to excess wealth order, then View the MathML source for k=0,1,…,n−1, where X0:n=Y0:n≡0. Similar results are obtained for location independent riskier order. An application in k-price business auction models is presented as well.
Available at: http://works.bepress.com/subhash_kochar/28/