When you don't find the joke funny, but everyone around you is laughing, so you've to fake laugh so as to get along with the crowd.
Person 1: Did you find their jokes funny?
Person 2: No, not at all.
Person 1: But you were laughing with everyone.
Person 2: That was peer laughter.
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When you don't find any funny jokes but you laugh because all the people near you are laughing and you want to mix in them..
Sam: Do you think that the joke was funny?
Richard: No it was no at all funny.
Sam: Then why did you laugh?
Richard: It was a peer laughter dude.