arXiv:2106.13350v2 [econ.TH] 1 Oct 2021 Reference Dependence and Random Attention ∗ Matthew Kovach † Elchin Suleymanov ‡ September 3, 2021 Abstract We explore the ways that a reference point may direct attention. Utilizing a stochastic choice framework, we provide behavioral foundations for the Reference- Dependent Random Attention Model (RD-RAM). Our characterization result shows that preferences may be uniquely identified even when the attention process depends arbitrarily on both the menu and the reference point. The RD-RAM is able to cap- ture rich behavioral patterns, including frequency reversals among non-status quo alternatives and choice overload. We also analyze specific attention processes, char- acterizing reference-dependent versions of several prominent models of stochastic consideration. Keywords: Random Choice, Status Quo Bias, Stochastic Consideration JEL: D01, D11 ∗ This paper combines and supersedes Kovach [2016] and Suleymanov [2018]. We would like to thank Federico Echenique, Shaowei Ke, Jay Lu, Yusufcan Masatlioglu, Romans Pancs, Pietro Ortoleva, Collin Ray- mond, and Levent Ülkü for helpful comments and suggestions. We would also like to thank the audiences of the spring 2016 Midwest Economic Theory Conference, the 2016 North American Summer Meeting of the Econometric Society, RUD 2016, Foundations of Utility and Risk Conference 2018, and the 2018 CIREQ Montréal Symposium in Microeconomic Theory. All errors are ours. † Department of Economics, Virginia Tech. E-mail: mkovach@vt.edu. ‡ Department of Economics, Purdue. E-mail: esuleyma@purdue.edu. 1