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Manipulation in Product Reviews

Student: Musaeva Hadija

Supervisor: Emiliano Catonini

Faculty: International College of Economics and Finance

Educational Programme: Double degree programme in Economics of the NRU HSE and the University of London (Bachelor)

Year of Graduation: 2019

In this paper I analyze the influence of manipulation imposed on customer reviews and how it affects pay-offs of institutions, in our case restaurants, which differ in quality. In a two staged game, I compare pay-off functions of restaurants of two types, given prior probabilities of the rating systems imposed by customers. Finally, find an equilibrium, which shows when and for which type it is beneficial to manipulate and when one should avoid manipulation, given various factors, such as manipulation costs, differing behaviors of customers, etc.

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