Who Matters to Whom? Identifying Peer Effects with Propagation Geometry

Fuente: arXiv
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Auteur principal: Tchuente, Guy
Format: Preprint
Publié: 2026
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author Tchuente, Guy
author_facet Tchuente, Guy
contents This paper develops a unifying theory of peer effects that treats the peer aggregator (the social norm mapping peers' actions into a scalar exposure) as the central behavioral primitive. We formulate peer influence as a norm game in which payoffs depend on own action and an exposure index, and we provide equilibrium existence and uniqueness for a broad class of aggregators. Using economically interpretable axioms, we organize commonly used exposure maps into a small taxonomy that nests linear-in-means, CES (peer-preference) norms, and smooth ``attention-to-salient-peers'' aggregators; rank-based quantile norms are treated as a complementary class. Building on this unification, we show that each aggregator induces an operator that governs how exogenous variation propagates through the network. Linear-in-means corresponds to constant transport (adjacency matrix), recovering the classic (friends-of-friends) instrument families. For nonlinear norms, operator becomes state- and preference-dependent and is characterized by the Jacobian of the exposure map evaluated at an exogenous predictor. This perspective yields geometry-induced instrument that exploit heterogeneity in marginal influence and nonredundant paths, and can remain informative when one-step moments or adjacency-power instruments become weak. Monte Carlo evidence and an application to NetHealth illustrate the practical implications across alternative aggregators and outcomes.
format Preprint
id arxiv_https___arxiv_org_abs_2602_23594
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle Who Matters to Whom? Identifying Peer Effects with Propagation Geometry
Tchuente, Guy
Econometrics
This paper develops a unifying theory of peer effects that treats the peer aggregator (the social norm mapping peers' actions into a scalar exposure) as the central behavioral primitive. We formulate peer influence as a norm game in which payoffs depend on own action and an exposure index, and we provide equilibrium existence and uniqueness for a broad class of aggregators. Using economically interpretable axioms, we organize commonly used exposure maps into a small taxonomy that nests linear-in-means, CES (peer-preference) norms, and smooth ``attention-to-salient-peers'' aggregators; rank-based quantile norms are treated as a complementary class. Building on this unification, we show that each aggregator induces an operator that governs how exogenous variation propagates through the network. Linear-in-means corresponds to constant transport (adjacency matrix), recovering the classic (friends-of-friends) instrument families. For nonlinear norms, operator becomes state- and preference-dependent and is characterized by the Jacobian of the exposure map evaluated at an exogenous predictor. This perspective yields geometry-induced instrument that exploit heterogeneity in marginal influence and nonredundant paths, and can remain informative when one-step moments or adjacency-power instruments become weak. Monte Carlo evidence and an application to NetHealth illustrate the practical implications across alternative aggregators and outcomes.
title Who Matters to Whom? Identifying Peer Effects with Propagation Geometry
topic Econometrics
url https://arxiv.org/abs/2602.23594