On the Uncertain Accuracy of Seller-Provided Information in the Presence of Online Reviews

Tian Li () and Zeting Chen
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Tian Li: East China University of Science and Technology
Zeting Chen: East China University of Science and Technology

A chapter in Smart Service Systems, Operations Management, and Analytics, 2020, pp 263-273 from Springer

Abstract: Abstract With the development of the Internet, online reviewsOnline reviews play a more important role than ever. We study the impact of online reviews on a seller’s information provisionInformation provision strategy regarding product quality. The accuracy of the seller-provided information can be uncertain. Yet the presence of online reviewsOnline reviews can resolve such uncertainty. We find that the seller can benefit from a greater capability in supplying more accurate information. We also find that online reviews do not always improve the seller’s expected profit and the uncertainty of the signal accuracy is not always unfavorable to the seller.

Keywords: Online reviews; Seller reputation; Information provision (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-030-30967-1_24

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DOI: 10.1007/978-3-030-30967-1_24

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