Averages (even with the post's approach) still have the problem of not being "honest" in the game theory sense. For example, if something is rated 4 stars with 100 reviews, a reviewer who believes its true rating should be 3 stars is motivated to give it 1 star because that will move the average rating closer to his desired outcome. A look at rating distributions shows that this is in fact how many people behave. Med…
>A look at rating distributions shows that this is in fact how many people behave. This is really interesting, do you have anything where I could read more about it?
In particular, the conclusion:
"The reviews on Amazon’s Electronics products very frequently rate the product 4 or 5 stars, and such reviews are almost always considered helpful. 1-stars are used to signify disapproval, and 2-star and 3-stars reviews have no significant impact at all. If that’s the case, then what’s the point of having a 5 star ranking system at all if the vast majority of reviewers favor the product? Would Amazon benefit if they made review ratings a binary like/dislike?"