Estimating Network Effects Using Naturally Occurring Peer Notification Queue Counterfactuals

TL;DR

This paper demonstrates how notification queueing can be used as a natural experiment to estimate peer effects in social networks, revealing significant impacts on user engagement and highlighting potential overestimations in traditional observational methods.

Contribution

It introduces a novel approach leveraging notification queue order as a natural experiment to estimate causal peer effects in online social platforms.

Findings

Receiving messages from peers significantly increases engagement.

Fixed-effects estimators can overestimate peer effects by up to 2.7x.

Notification queue order can serve as a natural experiment for causal inference.

Abstract

Randomized experiments, or A/B tests are used to estimate the causal impact of a feature on the behavior of users by creating two parallel universes in which members are simultaneously assigned to treatment and control. However, in social network settings, members interact, such that the impact of a feature is not always contained within the treatment group. Researchers have developed a number of experimental designs to estimate network effects in social settings. Alternatively, naturally occurring exogenous variation, or 'natural experiments,' allow researchers to recover causal estimates of peer effects from observational data in the absence of experimental manipulation. Natural experiments trade off the engineering costs and some of the ethical concerns associated with network randomization with the search costs of finding situations with natural exogenous variation. To mitigate the search costs associated with discovering natural counterfactuals, we identify a common engineering requirement used to scale massive online systems, in which natural exogenous variation is likely to exist: notification queueing. We identify two natural experiments on the LinkedIn platform based on the order of notification queues to estimate the causal impact of a received message on the engagement of a recipient. We show that receiving a message from another member significantly increases a member's engagement, but that some popular observational specifications, such as fixed-effects estimators, overestimate this effect by as much as 2.7x. We then apply the estimated network effect coefficients to a large body of past experiments to quantify the extent to which it changes our interpretation of experimental results. The study points to the benefits of using messaging queues to discover naturally occurring counterfactuals for the estimation of causal effects without experimenter intervention.