Paper #1515
- Title:
- Single-crossing random utility models
- Authors:
- Jose Apesteguia and Miguel A. Ballester
- Date:
- March 2016
- Abstract:
- 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 satis es the single-crossing property. We o er a characterization of SCRUMs based on three easy-to-check properties: Positivity, Monotonicity and Centrality. The identi ed 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.
- Keywords:
- Stochastic Choice; Single-Crossing Property; Random Utility Models; Monotone Comparative Statics.
- JEL codes:
- D00
- Area of Research:
- Behavioral and Experimental Economics / Microeconomics
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