Gamify My Review System: Stimulating Online Reviews with Nonfinancial Rewards

Abstract

Many platforms rely on financial rewards to incentivize online reviews. Such incentives come with substantial direct costs to the platform and negative side effects, like effort crowding out. Even though nonfinancial reward programs, such as in the form gamification systems, represent a promising alternative, their effectiveness on online review platforms has yet to be examined. This study addresses that gap using a unique matched dataset of online reviews from Google Maps and Tripadvisor. Our identification strategy hinges on a restructuring of Google’s reward program, Local Guides—namely, the increase of points and the introduction of extra points for detailing reviews. We found that, in response to that restructuring, the number of textual reviews increased by 62% and review length by 16%. We also detected a spillover effect on ratings without review texts, which increased 9% even though they were not incentivized during the course of the restructuring. Our study adds to the literature by providing evidence of the effectiveness of nonfinancial reward programs in stimulating online reviews without the downsides associated with financial rewards.