  We develop a general model of discrete choice that incorporates peer effects
in preferences and consideration sets. We characterize the equilibrium behavior
and establish conditions under which all parts of the model can be recovered
from a sequence of choices. We allow peers to affect only preferences, only
consideration, or both. We show that these peer-effect mechanisms have
different behavioral 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 the preferences and the consideration mechanisms of
each agent. 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 coffee chains and find evidence of
limited consideration. We simulate counterfactual predictions and show how
limited consideration slows down competition.
