Discrete Choice with Endogenous Peer Selection

Fuente: arXiv
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Autores principales: Kashaev, Nail, Lazzati, Natalia
Formato: Preprint
Publicado: 2025
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author Kashaev, Nail
Lazzati, Natalia
author_facet Kashaev, Nail
Lazzati, Natalia
contents We develop a continuous-time peer-effect discrete choice model where peers that affect the preferences of a given agent are randomly selected based on their previous choices. We characterize the equilibrium behavior and study the empirical content of the model. In the model, changes in the choices of peers affect both the set of peers the agent pays attention to and her preferences over the alternatives. We exploit variation in choices coupled with variation in the size of the set of potential peers to recover agents' preferences and the peer selection mechanism. These nonparametric identification results do not rely on exogenous variation of covariates.
format Preprint
id arxiv_https___arxiv_org_abs_2511_21446
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Discrete Choice with Endogenous Peer Selection
Kashaev, Nail
Lazzati, Natalia
Econometrics
Theoretical Economics
We develop a continuous-time peer-effect discrete choice model where peers that affect the preferences of a given agent are randomly selected based on their previous choices. We characterize the equilibrium behavior and study the empirical content of the model. In the model, changes in the choices of peers affect both the set of peers the agent pays attention to and her preferences over the alternatives. We exploit variation in choices coupled with variation in the size of the set of potential peers to recover agents' preferences and the peer selection mechanism. These nonparametric identification results do not rely on exogenous variation of covariates.
title Discrete Choice with Endogenous Peer Selection
topic Econometrics
Theoretical Economics
url https://arxiv.org/abs/2511.21446