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 School of Economics Working Paper 891
This paper is acknowledged by the Barcelona GSE Research Recognition Program