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You are here: Home / MPRC People / Ginger Zhe Jin, Ph.D. / Ginger Zhe Jin Publications / Optimal Aggregation of Consumer Ratings: An Application to

W Dai, GZ Jin, J Lee, and M Luca (2018)

Optimal Aggregation of Consumer Ratings: An Application to

Econometrica, also available as NBER working paper.

Because consumer reviews leverage the wisdom of the crowd, the way in which they are aggregated is a central decision faced by platforms. We explore this "rating aggregation problem" and offer a structural approach to solving it, allowing for (1) reviewers to vary in stringency and accuracy, (2) reviewers to be influenced by existing reviews, and (3) product quality to change over time. Applying this to restaurant reviews from, we construct an adjusted average rating and show that even a simple algorithm can lead to large information efficiency gains relative to the arithmetic average.

Health in Social Context, Jin, Health, Health and Nutrition
First Published: November 2012; Revised February 2018.

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