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In this paper, we quantify the social interaction (peer) effect from friends' and strangers' product adoption decisions. While a large literature has separately documented the importance of the observed adoptions of friends 1,2,8,9 and strangers 3,4,6,7 for spurring further product adoption, by analyzing both together we are able to benchmark their relative magnitudes, evaluate how these two types of peer effects interact, and provide managerial guidance on how firms can jointly leverage both types of peer effects in product seeding campaigns.
Goetz et al. (Tue,) studied this question.