BEER Lab Meeting - Noah Bohren

With Rustamdjan Hakimov & Luis Santos-Pinto

This study investigates the effectiveness of online rating systems in aiding consumer product choices, focusing on vertically and horizontally differentiated markets. By conducting an online experiment, it explores how rating systems, particularly those with added features like filtering and freezing periods, impact consumer welfare. Participants, tasked with selecting and rating quizzes in artificial marketplaces, provide insights into how ratings influence decision-making and welfare in different market structures. The study aims to determine whether rating systems enhance welfare and if modifications to these systems can further optimize consumer outcomes in varied market contexts.