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Open AccessArticle

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

1
School of Economics and Management, Dalian University of Technology, Dalian 116024, China
2
School of Mathematics Sciences, Henan Institute of Science and Technology, Xinxiang 453003, China
3
School of Computer Science, Inner Mongolia University, Hohhot 010021, China
*
Author to whom correspondence should be addressed.
Sustainability 2019, 11(22), 6289; https://doi.org/10.3390/su11226289
Received: 14 October 2019 / Revised: 4 November 2019 / Accepted: 7 November 2019 / Published: 8 November 2019
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.
Keywords: online reviews; information asymmetry; cross-network externalities; Bayesian theory; analytical modeling online reviews; information asymmetry; cross-network externalities; Bayesian theory; analytical modeling
MDPI and ACS Style

Du, X.; Dong, R.; Li, W.; Jia, Y.; Chen, L. Online Reviews Matter: How Can Platforms Benefit from Online Reviews? Sustainability 2019, 11, 6289.

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