The Effect of Information Salience on Product Quality: Louisville Restaurant Hygiene and Yelp.com

Matthew Makofske

Journal of Industrial Economics, 2020, vol. 68, issue 1, 52-92

Abstract: In June, 2013, Louisville, Kentucky, announced plans to provide restaurant health inspection scores—already available on the city’s website—for publication on Yelp.com. I find that this increased salience caused substantial hygiene improvements among independent Louisville restaurants across three different counterfactual models. Among independent Louisville restaurants, estimates suggest the partnership caused anywhere from a 9‐14% relative decrease in inspection score point deductions, with the effect being entirely evident in restaurants’ first inspections following the partnership’s announcement. Relative to the rest of Kentucky, I find that the partnership significantly reduced rates of severe food poisoning in Louisville.

Date: 2020
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https://doi.org/10.1111/joie.12214

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Working Paper: The Effect of Information Salience on Product Quality: Louisville Restaurant Hygiene and Yelp.com (2017)
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