Peer Effects in Consideration and Preferences

• 成果类型: Article; Early Access
• 署名作者: Kashaev, Nail; Lazzati, Natalia; Xiao, Ruli
• 署名单位: Western University (University of Western Ontario); University of California System; University of California Santa Cruz; Indiana University System; Indiana University Bloomington
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdag059
• 发表日期: 2026
• 关键词: statistical-mechanics; social interactions; continuous-time; random utility; choice models; wal-mart; Heterogeneity; INFORMATION; economies; entry

摘要

We develop a general model of discrete choice that incorporates peer effects in preferences and consideration sets. We characterize the equilibrium behaviour and establish conditions under which all parts of the model can be recovered from a sequence of choices. We allow peers to affect preferences, consideration, or both. We show that these peer-effect mechanisms have different behavioural implications in the data. This allows us to recover the set and the type of connections between the agents in the network. We then use this information to recover each agent's preferences and consideration mechanisms. These nonparametric identification results allow for general forms of heterogeneity across agents and do not rely on the variation of either exogenous covariates or the set of available options (menus). We apply our results to model expansion decisions by tea chains and find evidence of limited consideration. We simulate counterfactual predictions and show how limited consideration slows market penetration and competition.