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he Market for Fake Reviews
Sherry He , Brett Hollenbeck , Davide Proserpio
Published Online:25 Feb 2022https://doi.org/10.1287/mksc.2022.1353
Abstract
We study the market for fake product reviews on Amazon.com. Reviews are purchased in large private groups on Facebook and other sites. We hand-collect data on these markets and then collect a panel of data on these products' ratings and reviews on Amazon, as well as their sales rank, advertising, and pricing policies. We find that a wide array of products purchase fake reviews, including products with many reviews and high average ratings. Buying fake reviews on Facebook is associated with a significant but short-term increase in average rating and number of reviews. We exploit a sharp but temporary policy shift by Amazon to show that rating manipulation has a large causal effect on sales. Finally, we examine whether rating manipulation harms consumers or whether it is mainly used by high-quality products in a manner like advertising or by new products trying to solve the cold-start problem. We find that after firms stop buying fake reviews, their average ratings fall and the share of one-star reviews increases significantly, particularly for young products, indicating rating manipulation is mostly used by low-quality products.designer bags cyber mondayburberry bag outletdesigner bags cyber mondayburberry bags outlet In fact, Scott ranks 32nd on Tour this season in strokes gained putting.
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