Platform strategy to combat online review manipulation: store brand introduction and technology investment

Online review manipulation undermines consumer trust and platform reputation, creating a need for effective strategies. Platforms can introduce store brand (SB) and invest in fake review filtering technology (FRFT) to combat this. This paper models a supply chain with a manufacturer, platform, and consumers, examining the effectiveness of introducing SB, investing in FRFT, and combining both strategies. The study reveals that the optimal strategy depends on the initial value difference between the manufacturer’s national brand (NB) and the platform’s SB product, as well as the filtration capability of the FRFT. Interestingly, platform regulation doesn’t always harm the manufacturer’s profit, nor does it always benefit the platform’s. Furthermore, regulating fake reviews doesn’t guarantee maximum consumer surplus or social welfare, as it’s influenced by factors like manipulation costs and initial value difference between SB product and NB product. These findings offer valuable insights for platforms seeking to combat online review manipulation.