Using Yelp data to measure economic activity
Extremely interesting approach. My (non-academic) sense is that economics data collection approaches haven’t adapted as quickly to the “Big Data” era and this paper seems like a very cool outlier.
The importance of Yelp for restaurants
Two Berkeley economists have found that the tiniest changes in online restaurant reviews can make or break a restaurant. A simple half-star improvement on Yelp’s 5-star rating makes it 30-49% more likely that a restaurant will sell out its evening seats. Online reviews, the researchers conclude, “play an increasingly important role in how consumers judge the quality of goods and services.”