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Culling the herd: using real-world randomized experiments to measure social bias with known costly goods

2016-09Journal article Open access
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dc.contributor.authorMatos, Miguel Godinho de
dc.contributor.authorFerreira, Pedro
dc.contributor.authorSmith, Michael D.
dc.contributor.authorTelang, Rahul
dc.date.accessioned2021-05-28T10:21:17Z
dc.date.available2021-05-28T10:21:17Z
dc.date.issued2016-09
dc.description.abstractPeer ratings have become increasingly important sources of product information, particularly in markets for information goods. However, in spite of the increasing prevalence of this information, there are relatively few academic studies that analyze the impact of peer ratings on consumers transacting in real-world marketplaces. In this paper, we partner with a major telecommunications company to analyze the impact of peer ratings in a real-world video-on-demand market where consumer participation is organic and where movies are costly and well known to consumers. After experimentally changing the initial conditions of product information displayed to consumers, we find that, consistent with the prior literature, peer ratings influence consumer behavior independently from underlying product quality. However, we also find that, in contrast to the prior literature, there is little evidence of long-term bias as a result of herding effects, at least in our setting. Specifically, when movies are artificially promoted or demoted in peer rating lists, subsequent reviews cause them to return to their true quality position relatively quickly. One explanation for this difference is that consumers in our empirical setting likely had more outside information about the true quality of the products they were evaluating than did consumers in the studies reported in prior literature. Although tentative, this explanation suggests that in real-world marketplaces where consumers have sufficient access to outside information about true product quality, peer ratings may be more robust to herding effects and thus provide more reliable signals of true product quality than previously thought.pt_PT
dc.description.versioninfo:eu-repo/semantics/acceptedVersionpt_PT
dc.identifier.doi10.1287/mnsc.2015.2258pt_PT
dc.identifier.eid84988615511
dc.identifier.issn0025-1909
dc.identifier.urihttp://hdl.handle.net/10400.14/33362
dc.identifier.wos000388441500006
dc.language.isoengpt_PT
dc.peerreviewedyespt_PT
dc.subjectHerding behaviourpt_PT
dc.subjectLikespt_PT
dc.subjectRandomized experimentpt_PT
dc.subjectVideo on demandpt_PT
dc.titleCulling the herd: using real-world randomized experiments to measure social bias with known costly goodspt_PT
dc.typejournal article
dspace.entity.typePublication
oaire.citation.endPage2580pt_PT
oaire.citation.issue9pt_PT
oaire.citation.startPage2563pt_PT
oaire.citation.titleManagement Sciencept_PT
oaire.citation.volume62pt_PT
person.familyNameGodinho de Matos
person.familyNameSmith
person.familyNameTelang
person.givenNameMiguel
person.givenNameMichael
person.givenNameRahul
person.identifier.ciencia-id4217-C942-9E6F
person.identifier.ciencia-idE01A-0DD3-7BEF
person.identifier.orcid0000-0002-6333-2753
person.identifier.orcid0000-0002-6706-9382
person.identifier.orcid0000-0002-9353-7661
person.identifier.ridM-3545-2013
person.identifier.scopus-author-id56757598200
person.identifier.scopus-author-id57206575743
person.identifier.scopus-author-id6602320372
rcaap.rightsopenAccesspt_PT
rcaap.typearticlept_PT
relation.isAuthorOfPublicationc9055da8-5ee5-422f-914b-8f5363ea3db9
relation.isAuthorOfPublication15ee95bf-ed43-436a-a933-0338ede3281b
relation.isAuthorOfPublication9799bdac-af8f-4608-8e8b-4422097f13b8
relation.isAuthorOfPublication.latestForDiscovery9799bdac-af8f-4608-8e8b-4422097f13b8

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