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Random assignment to peer groups has proven useful to sidestep such a concern. In the absence of a formal randomization mechanism, it needs to be argued that assignment is \u201cas good as\u201d random. This paper introduces a simple yet powerful test to do so. We provide theoretical results for this test. As a by\u2010product, we equally obtain such results for an approach popularized by Guryan et al. (2009). These results help to explain why this approach suffers from low power, as has been observed elsewhere.<\/jats:p>","DOI":"10.1002\/jae.2953","type":"journal-article","created":{"date-parts":[[2023,1,7]],"date-time":"2023-01-07T13:49:40Z","timestamp":1673099380000},"page":"321-333","update-policy":"https:\/\/doi.org\/10.1002\/crossmark_policy","source":"Crossref","is-referenced-by-count":17,"title":["Testing random assignment to peer groups"],"prefix":"10.1002","volume":"38","author":[{"given":"Koen","family":"Jochmans","sequence":"first","affiliation":[{"name":"Toulouse School Of Economics University Of Toulouse Capitole  Toulouse France"}],"role":[{"role":"author","vocabulary":"crossref"}]}],"member":"311","published-online":{"date-parts":[[2023,2,14]]},"reference":[{"key":"e_1_2_9_2_1","doi-asserted-by":"publisher","DOI":"10.1198\/016214504000000412"},{"key":"e_1_2_9_3_1","doi-asserted-by":"publisher","DOI":"10.1016\/j.labeco.2014.05.008"},{"key":"e_1_2_9_4_1","doi-asserted-by":"publisher","DOI":"10.3982\/ECTA6496"},{"key":"e_1_2_9_5_1","unstructured":"Boozer M. &Cacciola S. 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