Bad News Turned Good: Reversal Under Censorship

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Standard

Bad News Turned Good : Reversal Under Censorship. / Smirnov, Aleksei; Starkov, Egor.

I: American Economic Journal: Microeconomics, Bind 14, Nr. 2, 05.2022, s. 506-60.

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt

Harvard

Smirnov, A & Starkov, E 2022, 'Bad News Turned Good: Reversal Under Censorship', American Economic Journal: Microeconomics, bind 14, nr. 2, s. 506-60. https://doi.org/10.1257/mic.20190379

APA

Smirnov, A., & Starkov, E. (2022). Bad News Turned Good: Reversal Under Censorship. American Economic Journal: Microeconomics, 14(2), 506-60. https://doi.org/10.1257/mic.20190379

Vancouver

Smirnov A, Starkov E. Bad News Turned Good: Reversal Under Censorship. American Economic Journal: Microeconomics. 2022 maj;14(2):506-60. https://doi.org/10.1257/mic.20190379

Author

Smirnov, Aleksei ; Starkov, Egor. / Bad News Turned Good : Reversal Under Censorship. I: American Economic Journal: Microeconomics. 2022 ; Bind 14, Nr. 2. s. 506-60.

Bibtex

@article{a83aedf478f24aa186500ff8a0502351,
title = "Bad News Turned Good: Reversal Under Censorship",
abstract = "Sellers often have the power to censor the reviews of their products. We explore the effect of these censorship policies in markets where some consumers are unaware of possible censorship. We find that if the share of such “naive” consumers is not too large, then rational consumers treat any bad review that is revealed in equilibrium as good news about product quality. This makes bad reviews worth revealing and allows the seller to use them as a costly signal of his product's quality to rational consumers.",
author = "Aleksei Smirnov and Egor Starkov",
year = "2022",
month = may,
doi = "10.1257/mic.20190379",
language = "English",
volume = "14",
pages = "506--60",
journal = "American Economic Journal: Microeconomics",
issn = "1945-7669",
publisher = "American Economic Association",
number = "2",

}

RIS

TY - JOUR

T1 - Bad News Turned Good

T2 - Reversal Under Censorship

AU - Smirnov, Aleksei

AU - Starkov, Egor

PY - 2022/5

Y1 - 2022/5

N2 - Sellers often have the power to censor the reviews of their products. We explore the effect of these censorship policies in markets where some consumers are unaware of possible censorship. We find that if the share of such “naive” consumers is not too large, then rational consumers treat any bad review that is revealed in equilibrium as good news about product quality. This makes bad reviews worth revealing and allows the seller to use them as a costly signal of his product's quality to rational consumers.

AB - Sellers often have the power to censor the reviews of their products. We explore the effect of these censorship policies in markets where some consumers are unaware of possible censorship. We find that if the share of such “naive” consumers is not too large, then rational consumers treat any bad review that is revealed in equilibrium as good news about product quality. This makes bad reviews worth revealing and allows the seller to use them as a costly signal of his product's quality to rational consumers.

U2 - 10.1257/mic.20190379

DO - 10.1257/mic.20190379

M3 - Journal article

VL - 14

SP - 506

EP - 560

JO - American Economic Journal: Microeconomics

JF - American Economic Journal: Microeconomics

SN - 1945-7669

IS - 2

ER -

ID: 243478925