- Author: Sarah Yang
- Editor: Ann Brody Guy
Every wonder whether those crowd-sourced reviews online actually make a difference in a business’s bottom line? For restaurants, the answer is an unequivocal yes, according to a new study by UC Berkeley economists. Researchers analyzed restaurant ratings on Yelp.com and found that, on a scale of 1 to 5 stars, a half-star rating increase translates into a 19 percent greater likelihood that an eatery’s seats will be full during peak dining times.
“This is the first study to link online consumer reviews with the popularity of restaurants,” said study lead author Michael Anderson, assistant professor in the Department of Agricultural and Resource Economics at UC...