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Fake Persuasion

Author

Listed:
  • Glazer, Jacob
  • Herrera, Helios
  • Perry, Motty

Abstract

We propose a model of product reviews with honest and fake reviews to study the value of information provided on platforms like TripAdvisor, Yelp, etc. In every period, a review is posted which is either honest, namely reveals the reviewer's true experience with the product/service, or fake, namely entirely fabricated in order to manipulate the public's beliefs. We establish that the equilibrium is unique and derive robust and interesting results about these markets. While fake agents are able to affect the public's beliefs in their preferred direction, aggregation of information takes place as long as some of the reviews are honest.

Suggested Citation

  • Glazer, Jacob & Herrera, Helios & Perry, Motty, 2018. "Fake Persuasion," CEPR Discussion Papers 13244, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:13244
    as

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    References listed on IDEAS

    as
    1. Navin Kartik, 2009. "Strategic Communication with Lying Costs," Review of Economic Studies, Oxford University Press, vol. 76(4), pages 1359-1395.
    2. Marco Ottaviani & Francesco Squintani, 2006. "Naive audience and communication bias," International Journal of Game Theory, Springer;Game Theory Society, vol. 35(1), pages 129-150, December.
    3. Morgane Laouénan & Roland Rathelot, 2017. "Ethnic Discrimination on an Online Marketplace of Vacation Rental," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01514713, HAL.
    4. Chen, Ying, 2011. "Perturbed communication games with honest senders and naive receivers," Journal of Economic Theory, Elsevier, vol. 146(2), pages 401-424, March.
    5. Crawford, Vincent P & Sobel, Joel, 1982. "Strategic Information Transmission," Econometrica, Econometric Society, vol. 50(6), pages 1431-1451, November.
    6. Kartik, Navin & Ottaviani, Marco & Squintani, Francesco, 2007. "Credulity, lies, and costly talk," Journal of Economic Theory, Elsevier, vol. 134(1), pages 93-116, May.
    7. Michael Luca & Georgios Zervas, 2016. "Fake It Till You Make It: Reputation, Competition, and Yelp Review Fraud," Management Science, INFORMS, vol. 62(12), pages 3412-3427, December.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Sender-Receiver Games;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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