Information Cascades and Online Rating Games
Social and Information Networks
2015-08-06 v1 Economics
Abstract
Through mathematical analysis and simulations, online ratings and their impact on businesses are characterized through two parameters: an inherent and objective restaurant quality factor, and the accuracy of customers' gut feeling about a business. Within this model, it is found that online ratings are seldom accurate mainly because of the low or high accuracy in customers' gut feelings.
Cite
@article{arxiv.1508.00893,
title = {Information Cascades and Online Rating Games},
author = {Oussama Fadil and Jake Soloff},
journal= {arXiv preprint arXiv:1508.00893},
year = {2015}
}