“Extrinsic versus Intrinsic Rewards to Participate in a Crowd Context: An Analysis of a Review Platform” by Mr. Warut KHERN-AM-NUAI
IIM SEMINAR
Speaker:
Mr. Warut KHERN-AM-NUAI
PhD Candidate in Management Information Systems
Krannert School of Management
Purdue University
Abstract:
This paper studies the implications of monetary incentives for writing online reviews. The research problem is important as firms, which seek to strengthen their online review platforms by attracting reviewers, have considered various forms of incentives including extrinsic rewards for writing reviews. We use data from two platforms and treat them as a natural experiment. Specifically, we use a difference-in-difference approach to empirically compare the quantity and quality of reviews before and after rewards were introduced in the experimental platform. We find that monetary incentives increases the total number of reviews per product. However, the average length of reviews is significantly shorter indicating possibly that the reviews may lack depth even though the star ratings are significantly more positive. We also evaluate using a dynamic panel data model the effect of rewards on existing reviewers who may be considered to be intrinsically motivated. We find that the participation in terms of the number of reviews written, as well as the depth of reviews, appear to decrease with incentives.
