2019
DOI: 10.3390/su11226289
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Online Reviews Matter: How Can Platforms Benefit from Online Reviews?

Abstract: Online reviews mitigate uncertainty about product quality that is caused by information asymmetry. However, low-quality online reviews are not effective, while high-quality online reviews may raise costs. Unlike the previous studies, this paper develops a game-theoretic model to examine the feasibility and pricing of online review supervision mechanism for operators of platforms that are based on the ‘network externality’. The results reveal that platforms are not always benefited from online reviews. We provi… Show more

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Cited by 7 publications
(3 citation statements)
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“…Generally, online reviews are acknowledged as available, trustworthy, and secure by both travelers and scholars [59,60]. In the eyes of executives, using online reviews has advantages such as collecting customer feedback in an economical and rapid way [58,61,62]. Scholars formerly investigated online reviews to find the key elements of tourists' general perception in different domains of hospitality.…”
Section: Role Of Web Reviews In Service Quality Studiesmentioning
confidence: 99%
“…Generally, online reviews are acknowledged as available, trustworthy, and secure by both travelers and scholars [59,60]. In the eyes of executives, using online reviews has advantages such as collecting customer feedback in an economical and rapid way [58,61,62]. Scholars formerly investigated online reviews to find the key elements of tourists' general perception in different domains of hospitality.…”
Section: Role Of Web Reviews In Service Quality Studiesmentioning
confidence: 99%
“…The quickly developing, large-scale, multi-user OFD platforms serve to directly connect numerous dispersed food producers and operators with millions upon millions of consumers. However, because OFD transactions are characterized by virtuality, invisibility, and complexity, OFD platforms can increase information asymmetries ( Du et al, 2019 ), bringing new concerns to governments’ traditional food regulatory system and new challenges to the traditional reputation-based market governance mechanism. Simultaneous government and market failures may occur in OFD food safety risk governance ( Zhang, 2021 ), which infringes consumers’ right to health.…”
Section: Introductionmentioning
confidence: 99%
“…More seriously, the platforms may hinder the effective flow of real food safety information between the platforms and government regulators. There is high information asymmetry among platforms, food producers and traders, consumers, and the government (Du et al, 2019 ), which makes government regulation more difficult. Thus, all these factors mean that great safety risks exist in online food delivery (Zhang, 2021 ).…”
Section: Introductionmentioning
confidence: 99%