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Online Reviews Matter: How Can Platforms Benefit from Online Reviews?

Author

Listed:
  • Xueke Du

    (School of Economics and Management, Dalian University of Technology, Dalian 116024, China)

  • Rui Dong

    (School of Mathematics Sciences, Henan Institute of Science and Technology, Xinxiang 453003, China)

  • Wenli Li

    (School of Economics and Management, Dalian University of Technology, Dalian 116024, China)

  • Yibo Jia

    (School of Economics and Management, Dalian University of Technology, Dalian 116024, China)

  • Lirong Chen

    (School of Computer Science, Inner Mongolia University, Hohhot 010021, China)

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 provide a new perspective and give some preventive suggestions for platforms with a view to furthering sustainable development.

Suggested Citation

  • Xueke Du & Rui Dong & Wenli Li & Yibo Jia & Lirong Chen, 2019. "Online Reviews Matter: How Can Platforms Benefit from Online Reviews?," Sustainability, MDPI, vol. 11(22), pages 1-20, November.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:22:p:6289-:d:285054
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    References listed on IDEAS

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    Cited by:

    1. Chunting Liu & Shanshan Wang & Guozhu Jia, 2020. "Exploring E-Commerce Big Data and Customer-Perceived Value: An Empirical Study on Chinese Online Customers," Sustainability, MDPI, vol. 12(20), pages 1-22, October.
    2. Xiaoting Dai & Linhai Wu, 2023. "The impact of capitalist profit-seeking behavior by online food delivery platforms on food safety risks and government regulation strategies," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-12, December.
    3. Huseyin Arasli & Mehmet Bahri Saydam & Hasan Kilic, 2020. "Cruise Travelers’ Service Perceptions: A Critical Content Analysis," Sustainability, MDPI, vol. 12(17), pages 1-13, August.

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