Investigating the Serial Position Effect in Consumer Valuation based on Online Product Reviews
DescriptionMotivated by serial position effect, a prevalent and robust finding in psychology, we intend to examine how the order in which product reviews are presented to consumers affects the consumers' valuation of the product. Following the tradition of experimental economics, we will investigate whether serial position effect has impact on market price and demand in the experiment. We will also examine if serial position effect can be corrected by providing consumers with market feedback or by designing the review website such that consumers are presented with a visualized overview of the information from all the available reviews.This research intends to make both theoretical and practical contributions. Theoretically, it highlights the importance of information presentation order in assessing the economic impact of online word-of-mouth. Practically, it may provide important guidelines for how to better protect consumer welfare and design online reviews presentation to correct for consumers' cognitive bias.
|Effective start/end date||1/10/13 → 8/05/15|