The AEA is providing open access to all journal content on the AEA website through August 2020 to overcome any difficulties some may have accessing library subscriptions during these challenging times.
The AEA is providing open access to all journal content on the AEA website through August 2020 to overcome any difficulties some may have accessing library subscriptions during these challenging times.
Sellers often have the power to censor the reviews of their products. We explore the effect of these censorship policies in markets
where some consumers are unaware of possible censorship. We
find that if the share of such "naive" consumers is not too large,
then rational consumers treat any bad review that is revealed in
equilibrium as good news about product quality. This makes bad
reviews worth revealing and allows the seller to use them to signal
his product's quality to rational consumers.
