Excess wealth order and sample spacings

Abstract

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 X n : n − X k : n ≤ icx Y n : n − Y k : n for k = 0 , 1 , … , n − 1 , where X 0 : n = Y 0 : n ≡ 0 . Similar results are obtained for location independent riskier order. An application in k -price business auction models is presented as well.