Tauer's Target MOTAD model can be used to compute stochastically
efficient mixtures of risky alternatives. The paper presents an
alternative method which is more consistent with accepted views of the
relationship between income and marginal utility. Unique solutions
belong to the set of third degree stochastic dominance efficient
mixtures. The method is illustrated using example data from Anderson,
Dillon and Hardaker. For their example, the method in this paper yields
less diverse crop mixtures than Target MOTAD does.
