The disproportion of crowd wisdom: The impact of status seeking on Yelp reviews

This study shows that while status seeking motivates people to participate in crowdsourcing platforms, it also negatively impacts the bedrock of crowdsourcing–wisdom of crowds. Using Yelp restaurant reviews in 6 cities, we found that motivations of status seeking lead people to review a greater variety of restaurants, and achieving status further encourages this variety seeking as well as the targeting of more expensive restaurants for review. The impact of this individual-level tendency is confirmed by our aggregate-level analysis which shows that restaurants with higher price levels, higher uniqueness levels, and a larger percentage of elite reviews tend to obtain enough reviews to generate wisdom of crowds sooner than other restaurants. This leads to a different kind of distortion to crowd wisdom: an over-representation of status-conferring products and an under-representation of products that are not status-worthy. The findings suggest the importance of studying sources of distortion that are endemic to crowdsourcing itself.