Customer reviews on sharing economy platforms like Airbnb have been studied extensively. However, their effectiveness has recently been questioned. We investigate their role regarding listing churn on Airbnb using panel data. We find that listings with few or poor ratings will likely leave the platform. Correcting for the listings' characteristics, we find that the best possible rating strongly predicts the listings' success. We conclude that the best rating is a necessary but insufficient condition for success.
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Kolleck et al. (2024) studied this question.
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