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Publications

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    • All HBS Web  (137)
      • Faculty Publications  (30)

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      • 2022
      • Working Paper

      Consumer Reviews and Regulation: Evidence from NYC Restaurants

      By: Chiara Farronato and Georgios Zervas
      We investigate the informativeness of hygiene signals in online reviews, and their effect on consumer choice and restaurant hygiene. We first extract signals of hygiene from Yelp. Among all dimensions that regulators monitor through mandated restaurant inspections, we...  View Details
      Keywords: Restaurants; Reviews; Hygiene; Yelp; Regulation; Food; Governing Rules, Regulations, and Reforms; Consumer Behavior
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      Farronato, Chiara, and Georgios Zervas. "Consumer Reviews and Regulation: Evidence from NYC Restaurants." NBER Working Paper Series, No. 29715, February 2022.
      • 2020
      • Working Paper

      Gentrification and Neighborhood Change: Evidence from Yelp

      By: Edward L. Glaeser, Michael Luca and Erica Moszkowski
      How does gentrification transform neighborhoods? Gentrification can harm current residents by increasing rental costs and by eliminating old amenities, including distinctive local stores. Rising rents represent redistribution from tenants to landlords and can therefore...  View Details
      Keywords: Gentrification; Neighborhoods; Impact; Geographic Location; Local Range; Transition; Business Exit or Shutdown
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      Glaeser, Edward L., Michael Luca, and Erica Moszkowski. "Gentrification and Neighborhood Change: Evidence from Yelp." Harvard Business School Working Paper, No. 21-074, December 2020.
      • December 2020
      • Supplement

      Yelp Data Supplement

      By: Iavor I Bojinov and Karim R. Lakhani
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      Bojinov, Iavor I., and Karim R. Lakhani. "Yelp Data Supplement." Harvard Business School Spreadsheet Supplement 621-703, December 2020.
      • October 2020
      • Case

      Experimentation at Yelp

      By: Iavor I Bojinov and Karim R. Lakhani
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      Bojinov, Iavor I., and Karim R. Lakhani. "Experimentation at Yelp." Harvard Business School Case 621-064, October 2020.
      • October 14, 2019
      • Article

      Designing Better Online Review Systems

      By: Geoff Donaker, Hyunjin Kim and Michael Luca
      Online reviews are transforming the way consumers choose products and services of all sorts. We turn to TripAdvisor to plan a vacation, Zocdoc to find a doctor, and Yelp to choose a new restaurant. Reviews can create value for buyers and sellers alike, but only if they...  View Details
      Keywords: Reviews; Internet and the Web; Design; Quality; Reputation
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      Donaker, Geoff, Hyunjin Kim, and Michael Luca. "Designing Better Online Review Systems." Harvard Business Review 97, no. 6 (November–December 2019): 122–129.
      • Article

      Product Quality and Entering Through Tying: Experimental Evidence

      By: Hyunjin Kim and Michael Luca
      Dominant platform businesses often develop products in adjacent markets to complement their core business. One common approach used to gain traction in these adjacent markets has been to pursue a tying strategy. For example, Microsoft pre-installed Internet Explorer...  View Details
      Keywords: Tying; Platform Strategy; Google; Product; Quality; Digital Platforms; Strategy; Market Entry and Exit
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      Kim, Hyunjin, and Michael Luca. "Product Quality and Entering Through Tying: Experimental Evidence." Management Science 65, no. 2 (February 2019): 596–603.
      • 2018
      • Working Paper

      Product Quality and Entering Through Tying: Experimental Evidence

      By: Michael Luca
      Dominant platform businesses often develop products in adjacent markets to complement their core business. One common approach used to gain traction in these adjacent markets has been to pursue a tying strategy. For example, Microsoft pre-installed Internet Explorer...  View Details
      Keywords: Market Entry and Exit; Digital Platforms; Competitive Strategy; Product Marketing; Quality
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      Kim, Hyunjin, and Michael Luca. "Product Quality and Entering Through Tying: Experimental Evidence." Harvard Business School Working Paper, No. 19-045, October 2018. (Revised December 2018. Forthcoming in Management Science.)
      • September 2018
      • Article

      Aggregation of Consumer Ratings: An Application to Yelp.com

      By: Weijia Dai, Ginger Jin, Jungmin Lee and Michael Luca
      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...  View Details
      Keywords: User Generated Content; Crowdsourcing; E-commerce; Yelp; Social and Collaborative Networks; Information; Internet and the Web; Learning; Mathematical Methods
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      Dai, Weijia, Ginger Jin, Jungmin Lee, and Michael Luca. "Aggregation of Consumer Ratings: An Application to Yelp.com." Quantitative Marketing and Economics 16, no. 3 (September 2018): 289–339.
      • 2018
      • Working Paper

      Measuring Gentrification: Using Yelp Data to Quantify Neighborhood Change

      By: Edward L. Glaeser, Hyunjin Kim and Michael Luca
      We demonstrate that data from digital platforms such as Yelp have the potential to improve our understanding of gentrification, both by providing data in close to real time (i.e., nowcasting and forecasting) and by providing additional context about how the local...  View Details
      Keywords: Geographic Location; Local Range; Transition; Analytics and Data Science; Measurement and Metrics; Forecasting and Prediction
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      Glaeser, Edward L., Hyunjin Kim, and Michael Luca. "Measuring Gentrification: Using Yelp Data to Quantify Neighborhood Change." NBER Working Paper Series, No. 24952, August 2018.
      • May 2018
      • Article

      Nowcasting Gentrification: Using Yelp Data to Quantify Neighborhood Change

      By: Edward L. Glaeser, Hyunjin Kim and Michael Luca
      Data from digital platforms have the potential to improve our understanding of gentrification and enable new measures of how neighborhoods change in close to real time. Combining data on businesses from Yelp with data on gentrification from the Census, Federal Housing...  View Details
      Keywords: Forecasting Models; Simulation Methods; Regional Economic Activity: Growth, Development, Environmental Issues, And Changes; Geographic Location; Local Range; Transition; Analytics and Data Science; Measurement and Metrics; Economic Growth; Forecasting and Prediction
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      Glaeser, Edward L., Hyunjin Kim, and Michael Luca. "Nowcasting Gentrification: Using Yelp Data to Quantify Neighborhood Change." AEA Papers and Proceedings 108 (May 2018): 77–82.
      • March 2018
      • Teaching Note

      Managing Diversity and Inclusion at Yelp

      By: Michael Luca, Joshua Schwartzstein and Gauri Subramani
      Teaching Note for HBS No. 918-009.  View Details
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      Luca, Michael, Joshua Schwartzstein, and Gauri Subramani. "Managing Diversity and Inclusion at Yelp." Harvard Business School Teaching Note 918-039, March 2018.
      • 2019
      • Working Paper

      Digitizing Disclosure: The Case of Restaurant Hygiene Scores

      By: Weijia (Daisy) Dai and Michael Luca
      Collaborating with Yelp and the city of San Francisco, we revisit a canonical example of quality disclosure by evaluating and helping to redesign the posting of restaurant hygiene scores on Yelp.com. We implement a two-stage intervention that separately identifies...  View Details
      Keywords: Information; Internet and the Web; Quality; Safety; Food; Consumer Behavior; Outcome or Result; Food and Beverage Industry
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      Dai, Weijia (Daisy), and Michael Luca. "Digitizing Disclosure: The Case of Restaurant Hygiene Scores." Harvard Business School Working Paper, No. 18-088, February 2018. (Revised March 2019. Forthcoming at American Economic Journal: Microeconomics.)
      • 2019
      • Working Paper

      Nowcasting Gentrification: Using Yelp Data to Quantify Neighborhood Change

      By: Edward L. Glaeser, Hyunjin Kim and Michael Luca
      Data from digital platforms have the potential to improve our understanding of gentrification and enable new measures of how neighborhoods change in close to real time. Combining data on businesses from Yelp with data on gentrification from the Census, Federal Housing...  View Details
      Keywords: Geographic Location; Local Range; Transition; Analytics and Data Science; Measurement and Metrics; Forecasting and Prediction
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      Glaeser, Edward L., Hyunjin Kim, and Michael Luca. "Nowcasting Gentrification: Using Yelp Data to Quantify Neighborhood Change." Harvard Business School Working Paper, No. 18-077, February 2018.
      • 2017
      • Working Paper

      Nowcasting the Local Economy: Using Yelp Data to Measure Economic Activity

      By: Edward L. Glaeser, Hyunjin Kim and Michael Luca
      Can new data sources from online platforms help to measure local economic activity? Government datasets from agencies such as the U.S. Census Bureau provide the standard measures of economic activity at the local level. However, these statistics typically appear only...  View Details
      Keywords: Economy; Analytics and Data Science; Local Range; Social and Collaborative Networks
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      Glaeser, Edward L., Hyunjin Kim, and Michael Luca. "Nowcasting the Local Economy: Using Yelp Data to Measure Economic Activity." Harvard Business School Working Paper, No. 18-022, September 2017. (Revised October 2017.)
      • September 2017
      • Supplement

      Managing Diversity and Inclusion at Yelp (B)

      By: Michael Luca, Joshua Schwartzstein and Gauri Subramani
      Supplements the (A) case.  View Details
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      Luca, Michael, Joshua Schwartzstein, and Gauri Subramani. "Managing Diversity and Inclusion at Yelp (B)." Harvard Business School Supplement 918-012, September 2017.
      • August 2017
      • Case

      Managing Diversity and Inclusion at Yelp

      By: Michael Luca, Joshua Schwartzstein and Gauri Subramani
      This case explores the industry-wide lack of employee diversity in the technology sector and Yelp’s decision to take a leadership position in identifying strategies to increase diversity. The goal of the case is to provide an opportunity for students to develop a...  View Details
      Keywords: Diversity; Employees; Leading Change; Strategy; Organizational Culture; Technology Industry
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      Luca, Michael, Joshua Schwartzstein, and Gauri Subramani. "Managing Diversity and Inclusion at Yelp." Harvard Business School Case 918-009, August 2017.
      • December 2016
      • Article

      Fake It Till You Make It: Reputation, Competition, and Yelp Review Fraud

      By: Michael Luca and Georgios Zervas
      Consumer reviews are now part of everyday decision making. Yet, the credibility of these reviews is fundamentally undermined when businesses commit review fraud, creating fake reviews for themselves or their competitors. We investigate the economic incentives to commit...  View Details
      Keywords: Ethics; Marketing Reference Programs
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      Luca, Michael, and Georgios Zervas. "Fake It Till You Make It: Reputation, Competition, and Yelp Review Fraud." Management Science 62, no. 12 (December 2016).
      • 2016
      • Working Paper

      Effectiveness of Paid Search Advertising: Experimental Evidence

      By: Weijia (Daisy) Dai and Michael Luca
      Paid search has become an increasingly common form of advertising, comprising about half of all online advertising expenditures. To shed light on the effectiveness of paid search, we design and analyze a large-scale field experiment on the review platform Yelp.com. The...  View Details
      Keywords: Internet and the Web; Performance; Digital Marketing; Service Industry
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      Dai, Weijia (Daisy), and Michael Luca. "Effectiveness of Paid Search Advertising: Experimental Evidence." Harvard Business School Working Paper, No. 17-025, October 2016.
      • July 2016
      • Teaching Note

      Launching Yelp Reservations

      By: Michael Luca, Kevin Mohan and Patrick Rooney
      This teaching note accompanies "Launching Yelp Reservations (A) and (B)," which present a multi-party negotiation among Yelp, current partner OpenTable, and two startups in the online restaurant reservation industry.  View Details
      Keywords: Information Technology; Negotiation; Business Startups; Acquisition; Technology Industry; United States
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      Luca, Michael, Kevin Mohan, and Patrick Rooney. "Launching Yelp Reservations." Harvard Business School Teaching Note 917-005, July 2016.
      • March 2016
      • Supplement

      Advertising Experiments at RestaurantGrades

      By: Weijia Dai, Hyunjin Kim and Michael Luca
      This exercise provides students with a data set consisting of results from a hypothetical experiment, and asks students to make recommendations based on the data. Through this process, the exercise teaches students to analyze, design, and interpret experiments. The...  View Details
      Keywords: Experimental Methods; Analytics; Web Technology; Marketing; Digital Marketing; Analysis; Performance Effectiveness; Social Media
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      Dai, Weijia, Hyunjin Kim, and Michael Luca. "Advertising Experiments at RestaurantGrades." Harvard Business School Spreadsheet Supplement 916-702, March 2016.
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