How Business Agglomeration Affects Individual Points-of-Interest: A Causal Effect Estimation Perspective

In modern cities, there is an increasing trend for the development of business agglomeration, which can foster the prosperity of individual businesses by clustering stores and industries. Recently, the advent of Point-of-Interest (POI) data enables a new paradigm for studying the causal effect of business agglomeration in a data-driven way. To this end, we aim to quantify the contribution of the agglomeration effect to the check-in volume at POIs. This is a non-trivial causal effect estimation task due to the higher-order spatial interference typically exhibited by the agglomeration distribution. Moreover, the confounding bias can be exacerbated due to the complex spatial and functional properties inherent to confounders. Therefore, we propose a Causal effect estimation framework for AgglomeRation Effect (CARE) measurement, which includes a Spatial Interference Diffusion Network (SIDN) and a Disentangled Propensity Estimator (DPE). SIDN captures spatial interference by spreading the treatment effect among POIs through a dedicated spatial agglomeration hypergraph. Then, DPE models a POI's propensity of receiving the treatment and further unravels the spatial and inherent aspects of propensity by disentangled learning objectives. In addition, we incorporate SIDN and DPE into a unified causal effect estimation architecture using neural Robinson decomposition. Finally, extensive experiments on three real-world datasets validate the effectiveness and universality of CARE for measuring the agglomeration effect.