Ratings on platforms such as Yelp and TripAdvisor can greatly impact high-priced New York City restaurants that service tourists, but have less of an effect on restaurants frequented by « locals » outside of tourist areas, according to new Cornell research.
Ratings on platforms such as Yelp and TripAdvisor can greatly impact high-priced New York City restaurants that service tourists, but have less of an effect on restaurants frequented by « locals » outside of tourist areas, according to new Cornell research.
« In neighborhoods frequented by ‘locals,’ the advent and expansion of internet-based ratings platforms did not result in greater disparities in restaurant sales despite how ubiquitous they are and how frequently we anecdotally use them, » said Jason Greenberg, associate professor of management and organizations at the Peter and Stephanie Nolan School of Hotel Administration in the Cornell SC Johnson College of Business.
Greenberg co-authored the paper, « Rating Systems and Increased Heterogeneity in Firm Performance: Evidence From the New York City Restaurant Industry, 1994-2013, » published Aug. 28 in Strategic Management Journal. The paper was co-authored with New York University Stern School of Business faculty Gino Cattani and Joe Porac and former Stern doctoral student Daniel Sands, now of University College London.
