Single-Crossing Random Utility Models

Recognition Program

Authors: Jose Apesteguia, Miguel Ángel Ballester and Jay Lu

Econometrica, Vol. 85, No 2, 661-674, February, 2017

We propose a novel model of stochastic choice: the single-crossing random utility model (SCRUM). This is a random utility model in which the collection of preferences satisfies the single-crossing property. We offer a characterization of SCRUMs based on two easy-to-check properties: the classic Monotonicity property and a novel condition, Centrality. The identified collection of preferences and associated probabilities is unique. We show that SCRUMs nest both single-peaked and single-dipped random utility models and establish a stochastic monotone comparative result for the case of SCRUMs.

This paper originally appeared as Barcelona GSE Working Paper 891
This paper is acknowledged by the Barcelona GSE Research Recognition Program