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

In: Smart Service Systems, Operations Management, and Analytics

Author

Listed:
  • Tian Li

    (East China University of Science and Technology)

  • Zeting Chen

    (East China University of Science and Technology)

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.

Suggested Citation

  • Tian Li & Zeting Chen, 2020. "On the Uncertain Accuracy of Seller-Provided Information in the Presence of Online Reviews," Springer Proceedings in Business and Economics, in: Hui Yang & Robin Qiu & Weiwei Chen (ed.), Smart Service Systems, Operations Management, and Analytics, pages 263-273, Springer.
    • Handle: RePEc:spr:prbchp:978-3-030-30967-1_24
    DOI: 10.1007/978-3-030-30967-1_24
    as

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