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Fake Reviews

Author

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  • Jacob Glazer
  • Helios Herrera
  • Motty Perry

Abstract

We propose a model of product reviews in which some are genuine and some are fake in order to shed light on the value of information provided on platforms like TripAdvisor, Yelp, etc. In every period, a review is posted which is either genuine or fake. We characterise the equilibrium of the dynamic model and prove that it is unique. In equilibrium, valuable learning takes place in every period. Fake reviews, however, do slow down the learning process. It is established that any attempt by the platform to manipulate the reviews is counterproductive.

Suggested Citation

  • Jacob Glazer & Helios Herrera & Motty Perry, 2021. "Fake Reviews," The Economic Journal, Royal Economic Society, vol. 131(636), pages 1772-1787.
    • Handle: RePEc:oup:econjl:v:131:y:2021:i:636:p:1772-1787.
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    File URL: http://hdl.handle.net/10.1093/ej/ueaa124
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