Template-Type: ReDIF-Paper 1.0
Title: Ratings with Heterogeneous Preferences
Author-Name: Jonathan Lafky
Author-Email: 
Author-Name: Robin Ng
Author-Email: 

Classification-JEL: C91, D64, D83, L86
Keywords: Ratings and Reviews, Altruism

Abstract: We examine how product ratings are interpreted in the presence of heterogeneous
preferences among both raters and consumers. Raters with altruistic motives should
rate for the benefit of future consumers, however an ambiguity arises when preferences
are heterogeneous. Multiple equilibria exist in which ratings may reflect the
preferences of raters or the preferences of future consumers. In an online experiment,
we examine how ratings are selected by raters and interpreted by consumers,
and how information about rater preferences or product attributes can influence
equilibrium selection. We show how both raters and consumers update their evaluation
of what a rating represents in each environment, doing so in similar ways.

Note: 
Length: 35
Creation-Date: 2024-09
Revision-Date: 
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp594
File-Format: application/pdf
Handle: RePEc:bon:boncrc:CRCTR224_2024_594