Thursday, September 19, 2024
Learning From Online Ratings
| By: | Xiang Hui; Tobias J. Klein; Konrad Stahl |
| Abstract: | Online ratings play an important role in many markets. However, how fast they can reveal seller types remains unclear. We propose a simple model of rating behavior where learning about the seller type influences the rating decision. We calibrate the model to eBay data and find that ratings can be very informative. After 25 transactions, the likelihood of correctly predicting the seller type is above 95 percent. |
| URL: | http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2024_532&r=ind |
https://lawprofessors.typepad.com/antitrustprof_blog/2024/09/learning-from-online-ratings.html
