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  • 2022
  • Working Paper

Consumer Reviews and Regulation: Evidence from NYC Restaurants: 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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  • 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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  • December 2020
  • Supplement

Yelp Data Supplement
By: Iavor I Bojinov and Karim R. Lakhani
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  • October 2020 (Revised August 2022)
  • Case

Experimentation at Yelp
By: Iavor I Bojinov and Karim R. Lakhani
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  • 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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  • 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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  • 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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  • 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; Yelp; Social and Collaborative Networks; Information; Internet and the Web; Learning; Mathematical Methods; E-commerce
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  • 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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  • 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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  • 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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  • 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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  • 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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  • 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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  • 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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  • 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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  • 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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  • 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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  • 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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  • 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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