The Effect of Information Salience on Product Quality: Louisville Restaurant Hygiene and Yelp.com

A-Tier
Journal: Journal of Industrial Economics
Year: 2020
Volume: 68
Issue: 1
Pages: 52-92

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In June, 2013, Louisville, Kentucky, announced plans to provide restaurant health inspection scores—already available on the city’s website—for publication on Yelp.com. I find that this increased salience caused substantial hygiene improvements among independent Louisville restaurants across three different counterfactual models. Among independent Louisville restaurants, estimates suggest the partnership caused anywhere from a 9‐14% relative decrease in inspection score point deductions, with the effect being entirely evident in restaurants’ first inspections following the partnership’s announcement. Relative to the rest of Kentucky, I find that the partnership significantly reduced rates of severe food poisoning in Louisville.

Technical Details

RePEc Handle
repec:bla:jindec:v:68:y:2020:i:1:p:52-92
Journal Field
Industrial Organization
Author Count
1
Added to Database
2026-01-25