Pricing for the Stars: Dynamic Pricing in the Presence of Rating Systems

An extended abstract of an earlier version of this paper was published as Stenzel et al. (2020). The authors thank the editor, Kartik Hosanagar, an associate editor, and four anonymous referees for constructive comments. The authors also thank Jérôme Adda, Heski Bar-Isaac, Luis Cabral, Justin Johnson, Xavier Lambin, Volker Nocke, Marco Ottaviani, Martin Peitz, Martin Pollrich, Johannes Schneider, Nicolas Schutz, Anton Sobolev, Konrad Stahl, and Stefan Weiergräber for helpful comments and suggestions and seminar audiences at the Bank of Canada, Berlin, Bocconi, Genova, Leicester, Mannheim, Northwestern, OsloMet, the joint Digital Economics Seminar, the European Association for Research in Industrial Economics Annual Meeting 2019, the Econometric Society European Meeting 2019, the Mannheim Centre for Competition and Innovation Summer Institute 2019, the International Industrial Organization Conference 2018, the EIEF-Unibo-IGIER Bocconi Workshop on Industrial Organization 2018, the Mannheim Centre for Competition and Innovation Annual Conference 2016, and the Verein fuer Socialpolitik Jahrestagung 2016 for input. The authors thank Johannes Dittrich for making the Steam data available to us. The views in this paper are solely those of the authors. No responsibility for them should be attributed to the Bank of Canada.