Causal inference for social network formation

Fuente: arXiv
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Auteurs principaux: Kasy, Maximilian, Linos, Elizabeth, Mobasseri, Sanaz
Format: Preprint
Publié: 2026
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author Kasy, Maximilian
Linos, Elizabeth
Mobasseri, Sanaz
author_facet Kasy, Maximilian
Linos, Elizabeth
Mobasseri, Sanaz
contents This paper develops a framework for identification, estimation, and inference on the causal mechanisms driving endogenous social network formation. Identification is challenging because of unobserved confounders and reverse causality; inference is complicated by questions of equilibrium and sampling. We leverage repeated observations of a network over time and random variation in initial ties to address challenges to causal identification. Our design-based approach sidesteps questions of sampling and asymptotics by treating both the set of nodes (individuals) and potential outcomes as non-random. We apply our approach to data from a large professional services firm, where new hires are randomly assigned to project teams within offices. We estimate the causal effect on tie formation of indirect ties, network degree, and local network density. Indirect ties have a strong and significant positive effect on tie formation, while the effects of degree and density are smaller and less robust.
format Preprint
id arxiv_https___arxiv_org_abs_2604_17952
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle Causal inference for social network formation
Kasy, Maximilian
Linos, Elizabeth
Mobasseri, Sanaz
Econometrics
Social and Information Networks
Applications
This paper develops a framework for identification, estimation, and inference on the causal mechanisms driving endogenous social network formation. Identification is challenging because of unobserved confounders and reverse causality; inference is complicated by questions of equilibrium and sampling. We leverage repeated observations of a network over time and random variation in initial ties to address challenges to causal identification. Our design-based approach sidesteps questions of sampling and asymptotics by treating both the set of nodes (individuals) and potential outcomes as non-random. We apply our approach to data from a large professional services firm, where new hires are randomly assigned to project teams within offices. We estimate the causal effect on tie formation of indirect ties, network degree, and local network density. Indirect ties have a strong and significant positive effect on tie formation, while the effects of degree and density are smaller and less robust.
title Causal inference for social network formation
topic Econometrics
Social and Information Networks
Applications
url https://arxiv.org/abs/2604.17952