IDEAS home Printed from https://ideas.repec.org/a/wly/emetrp/v92y2024i2p567-590.html
   My bibliography  Save this article

Randomization Tests for Peer Effects in Group Formation Experiments

Author

Listed:
  • Guillaume Basse
  • Peng Ding
  • Avi Feller
  • Panos Toulis

Abstract

Measuring the effect of peers on individuals' outcomes is a challenging problem, in part because individuals often select peers who are similar in both observable and unobservable ways. Group formation experiments avoid this problem by randomly assigning individuals to groups and observing their responses; for example, do first‐year students have better grades when they are randomly assigned roommates who have stronger academic backgrounds? In this paper, we propose randomization‐based permutation tests for group formation experiments, extending classical Fisher Randomization Tests to this setting. The proposed tests are justified by the randomization itself, require relatively few assumptions, and are exact in finite samples. This approach can also complement existing strategies, such as linear‐in‐means models, by using a regression coefficient as the test statistic. We apply the proposed tests to two recent group formation experiments.

Suggested Citation

  • Guillaume Basse & Peng Ding & Avi Feller & Panos Toulis, 2024. "Randomization Tests for Peer Effects in Group Formation Experiments," Econometrica, Econometric Society, vol. 92(2), pages 567-590, March.
  • Handle: RePEc:wly:emetrp:v:92:y:2024:i:2:p:567-590
    DOI: 10.3982/ECTA20134
    as

    Download full text from publisher

    File URL: https://doi.org/10.3982/ECTA20134
    Download Restriction: no

    File URL: https://libkey.io/10.3982/ECTA20134?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:emetrp:v:92:y:2024:i:2:p:567-590. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/essssea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.