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Online ratings: biased or manipulated ?

Online ratings are one of the most trusted sources of consumer confidence in e-commerce decisions. But recent research suggests that they are systematically biased and easily manipulated.

-- Sinan Aral, the David Austin Professor of Management and an associate professor of information technology and marketing at the MIT Sloan School of Management.

n one study that examined the skewed distribution of online ratings, researchers Nan Hu, Paul Pavlou and Jennifer Zhang also conducted a small side experiment.7 They invited students to a lab to rate a single music CD selected at random from Amazon and compared the resulting ratings to the ratings of the same CD on the Amazon site. They did this to see if the distribution of (an albeit small) random sample of actual opinions about this item (66 students in a university lab) matched the distribution of ratings given on Amazon. What they found was puzzling: The ratings from their experiment were approximately normally distributed, like a standard bell curve, cresting in the middle (reflecting the higher frequency of two-star, three-star and four-star reviews) and sinking at the extremes (reflecting the comparable paucity of one-star and five-star reviews). Meanwhile, the distribution of ratings on Amazon for the same item followed the J-shape (with the frequency of five-star reviews more than doubling that of one-star, two-star, three-star and four-star reviews).

The authors interpreted these findings as evidence that Amazon's buyers are more likely to be positively predisposed to a product because they had voluntarily purchased it, creating a selection bias toward more positive ratings. Selection bias is a potentially good explanation for the J shape (if reviews come from purchasers and if purchasers are, indeed, positively predisposed). But here's the catch: Amazon does not require users to buy items before rating them. So I wondered: Were prior ratings in this experiment shown to raters before they rated? The paper makes no mention of this aspect of the experimental setup. I wrote to the authors and asked them whether prior ratings were visible to users during the rating process. They replied that they were not. Examining social influence bias was not part of their study. In other words, the simulated environment they had created mimicked Amazon's interface -- with one crucial difference: The raters did not see the distribution of prior ratings, or any information on prior ratings for that matter, before they rated any item.

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