Single-Crossing Differences

نویسندگان

  • Navin Kartik
  • SangMok Lee
  • Daniel Rappoport
  • Alexey Kushnir
  • Shuo Liu
  • Lones Smith
  • Bruno Strulovici
چکیده

We characterize when choices among lotteries over arbitrary allocations are monotonic in an expected-utility agent’s type. Our necessary and sufficient condition is on the von Neumann-Morgenstern utility function; we identify an order over lotteries that generates the choice monotonicity when the condition holds. We discuss applications to cheap-talk games, costly signaling games, and collective choice problems. Our characterization requires some new results on monotone comparative statics and aggregating single-crossing functions, a by-product of which is a characterization of the monotone likelihood ratio property.

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تاریخ انتشار 2017