Promotional Reviews: An Empirical Investigation of Online Review Manipulation
- (pp. 2421-55)
AbstractFirms' incentives to manufacture biased user reviews impede review usefulness. We examine the differences in reviews for a given hotel between two sites: Expedia.com (only a customer can post a review) and TripAdvisor.com (anyone can post). We argue that the net gains from promotional reviewing are highest for independent hotels with single-unit owners and lowest for branded chain hotels with multi-unit owners. We demonstrate that the hotel neighbors of hotels with a high incentive to fake have more negative reviews on TripAdvisor relative to Expedia; hotels with a high incentive to fake have more positive reviews on TripAdvisor relative to Expedia.
Citation2014. "Promotional Reviews: An Empirical Investigation of Online Review Manipulation." American Economic Review, 104(8): 2421-55. DOI: 10.1257/aer.104.8.2421
- L15 Information and Product Quality; Standardization and Compatibility
- L83 Sports; Gambling; Restaurants; Recreation; Tourism
- M31 Marketing