Reviews are ubiquitous in the online economy What do taxi drivers, mortgage brokers and dentists all have in common? They are all equally likely to ask you for an elusive 5-star rating. Reviews are now so commonplace that it is impossible to avoid them – we write them, read them and demand them from others. In this article we are going to investigate the benefit of those review systems, and why their concrete set-up matters.
Professional tennis is probably one of the toughest sports. As the game has shifted into the realm of high speeds and relentless rallies, equipment has gone through immense developments and players are reaching the peaks of their physical form, the hidden key to winning may now lie with game theory. Economic research over the last few years suggests that the likes of Djokovic, Nadal and Federer not only spend hours mastering their serve, forehand and backhand, but also seem to spend a significant amount of time honing their game theory skills.
In the wildlife animals move together as a group and herding behaviour is not uncommon. Humans are not that different and can build up group momentum following just one or two leaders. As it turns out this herd mentality and behaviour of humans can be observed in all walks of life. Every hour of the day we are bombarded by constant need to make decisions and most of the time these decisions are affected by what those around us are doing.