This paper develops a dynamic model of discrete choice that incorporates peer effects into random consideration sets. We characterize the equilibrium behavior and study the empirical content of the model. In our setup, changes in the choices of friends induce changes in the distribution of the consideration sets. We exploit this variation to recover the ranking of preferences, the attention mechanisms, and the network connections. These  identification results allow unrestricted heterogeneity across people and do not rely on  variation of either covariates or the set of available options. Our methodology leads to a maximum-likelihood estimator that performs well in simulations  .
We develop a dynamic model of discrete choice that incorporates peer effects into random consideration sets. We characterize the equilibrium behavior and study the empirical content of the model. In our setup, changes in the choices of friends affect the distribution of the consideration sets. We exploit this variation to recover the ranking of preferences, attention mechanisms, and network connections. These nonparametric identification results allow unrestricted heterogeneity across people and do not rely on the variation of either covariates or the set of available options. Our methodology leads to a maximum-likelihood estimator that performs well in simulations . We apply our results to an experimental dataset that has been designed to study the visual focus of attention .
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. We apply our results to an experimental dataset that has been designed to study the visual focus of attention