Single-Crossing Random Utility Models

• Authors: Jose Apesteguia.
• BSE Working Paper: 110364 | March 16
• Keywords: stochastic choice; single-crossing property; random utility models; monotone comparative statics
• JEL codes: D00
• stochastic choice; single-crossing property; random utility models; monotone comparative statics

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 utility functions satisfies the single-crossing property. We offer a characterization of SCRUMs based on three easy-to-check properties: Positivity, Monotonicity and Centrality. The identified collection of utility functions and associated probabilities is basically unique. We establish a stochastic monotone comparative result for the case of SCRUMs and study several generalizations of SCRUMs.