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We find that statistical analyses of observable network structure do not consistently take these discrepancies into account, and this omission may lead to inaccurate inferences about hypothesized network mechanisms. To remedy this issue, we apply techniques of robust optimization to statistical models for social network analysis. Using robust maximum likelihood, we derive an estimation technique that immunizes inference to errors such as false positives and false negatives, without knowing a priori the source or realized magnitude of the error. We demonstrate the efficacy of our methodology on real social network datasets and simulated data. Our contributions extend beyond the social network context, as perception gaps may exist in many other economic contexts.<\/jats:p>","DOI":"10.25300\/misq\/2022\/15992","type":"journal-article","created":{"date-parts":[[2022,10,17]],"date-time":"2022-10-17T15:07:26Z","timestamp":1666019246000},"page":"713-738","source":"Crossref","is-referenced-by-count":6,"title":["A Robust Inference Method for Decision-Making in Networks"],"prefix":"10.25300","volume":"46","author":[{"given":"Aaron","family":"Schecter","sequence":"first","affiliation":[{"name":"University of Georgia, Athens, GA, U.S.A."}],"role":[{"vocabulary":"crossref","role":"author"}]},{"given":"Omid","family":"Nohadani","sequence":"additional","affiliation":[{"name":"Benefits Science Technology, Boston, MA, U.S.A."}],"role":[{"vocabulary":"crossref","role":"author"}]},{"given":"Noshir","family":"Contractor","sequence":"additional","affiliation":[{"name":"Northwestern University, Evanston, IL, U.S.A."}],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"10933","published-online":{"date-parts":[[2022,6,1]]},"reference":[{"issue":"3","key":"2025082212272100600_b1-02_15992_ma_schecter","doi-asserted-by":"crossref","first-page":"243","DOI":"10.1287\/isre.1080.0200","article-title":"Editorial overview: The interplay between digital and social networks","volume":"19","author":"Agarwal","year":"2008","journal-title":"Information Systems Research"},{"issue":"1","key":"2025082212272100600_b2-02_15992_ma_schecter","doi-asserted-by":"crossref","first-page":"90","DOI":"10.1086\/661238","article-title":"The diversity-bandwidth trade-off","volume":"117","author":"Aral","year":"2011","journal-title":"American Journal of Sociology"},{"issue":"6092","key":"2025082212272100600_b3-02_15992_ma_schecter","doi-asserted-by":"crossref","first-page":"337","DOI":"10.1126\/science.1215842","article-title":"Identifying influential and susceptible members of social networks","volume":"337","author":"Aral","year":"2012","journal-title":"Science"},{"issue":"6","key":"2025082212272100600_b4-02_15992_ma_schecter","doi-asserted-by":"crossref","first-page":"1352","DOI":"10.1287\/mnsc.2014.1936","article-title":"Tie Strength, Embeddedness, and Social Influence: A Large-Scale Networked Experiment","volume":"60","author":"Aral","year":"2014","journal-title":"Management Science"},{"issue":"1","key":"2025082212272100600_b5-02_15992_ma_schecter","doi-asserted-by":"crossref","first-page":"115","DOI":"10.25300\/MISQ\/2017\/41.1.06","article-title":"Trust and the strength of ties in online social networks: An exploratory field experiment","volume":"41","author":"Bapna","year":"2017","journal-title":"MIS Quarterly"},{"issue":"3","key":"2025082212272100600_b6-02_15992_ma_schecter","doi-asserted-by":"crossref","first-page":"841","DOI":"10.25300\/MISQ\/2017\/41.3.08","article-title":"Repeated interactions versus social ties: quantifying the economic value of trust, forgiveness, and reputation using a field experiment","volume":"41","author":"Bapna","year":"2017","journal-title":"MIS Quarterly"},{"issue":"8","key":"2025082212272100600_b7-02_15992_ma_schecter","doi-asserted-by":"crossref","first-page":"1902","DOI":"10.1287\/mnsc.2014.2081","article-title":"Do your online friends make you pay? 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