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Consumer Reviews and Regulation: Evidence from NYC Restaurants / Chiara Farronato, Georgios Zervas.
- Format:
- Book
- Author/Creator:
- Farronato, Chiara.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w29715.
- NBER working paper series no. w29715
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2022.
- Summary:
- We investigate the informativeness of hygiene signals in online reviews, and their effect on consumer choice and restaurant hygiene. We first extract signals of hygiene from Yelp. Among all dimensions that regulators monitor through mandated restaurant inspections, we find that reviews are more informative about hygiene dimensions that consumers directly experience - food temperature and pests - than other dimensions. Next, we find causal evidence that consumer demand is sensitive to these hygiene signals. We also find suggestive evidence that restaurants that are more exposed to Yelp are cleaner along dimensions for which online reviews are more informative.
- Notes:
- Print version record
- February 2022.
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