Reviews, Reputation, and Revenue: The Case of Yelp.com

@inproceedings{Luca2016ReviewsRA,
  title={Reviews, Reputation, and Revenue: The Case of Yelp.com},
  author={Michael Luca},
  year={2016}
}
Do online consumer reviews affect restaurant demand? I investigate this question using a novel dataset combining reviews from the website Yelp.com and restaurant data from the Washington State Department of Revenue. Because Yelp prominently displays a restaurant's rounded average rating, I can identify the causal impact of Yelp ratings on demand with a regression discontinuity framework that exploits Yelp’s rounding thresholds. I present three findings about the impact of consumer reviews on… CONTINUE READING

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