Online Labor Market Signaling with App-based Monitoring

2019 ◽  
Author(s):  
Zhenhua Wu ◽  
Chen Liang ◽  
Bin Gu
Author(s):  
Nikhil Garg ◽  
Ramesh Johari

Problem definition: Platforms critically rely on rating systems to learn the quality of market participants. In practice, however, ratings are often highly inflated and therefore, not very informative. In this paper, we first investigate whether the platform can obtain less inflated, more informative ratings by altering the meaning and relative importance of the levels in the rating system. Second, we seek a principled approach for the platform to make these choices in the design of the rating system. Academic/practical relevance: Platforms critically rely on rating systems to learn the quality of market participants, and so, ensuring these ratings are informative is of first-order importance. Methodology: We analyze the results of a randomized, controlled trial on an online labor market in which an additional question was added to the feedback form. Between treatment conditions, we vary the question phrasing and answer choices; in particular, the treatment conditions include several positive-skewed verbal rating scales with descriptive phrases or adjectives providing specific interpretation for each rating level. We then develop a model-based framework to compare and select among rating system designs and apply this framework to the data obtained from the online labor market test. Results: Our test reveals that current inflationary norms can be countered by reanchoring the meaning of the levels of the rating system. In particular, positive-skewed verbal rating scales yield substantially deflated rating distributions that are much more informative about seller quality. Further, we demonstrate that our model-based framework for scale design and optimization can identify the most informative rating system and substantially improve the quality of information obtained over baseline designs. Managerial implications: Our study illustrates that practical, informative rating systems can be designed and demonstrates how to compare and design them in a principled manner.


2021 ◽  
pp. 0119-9979R2
Author(s):  
Daniel Kreisman ◽  
Jonathan Smith ◽  
Bondi Arifin

2019 ◽  
Vol 37 (3) ◽  
pp. 715-746 ◽  
Author(s):  
Stefano Banfi ◽  
Benjamín Villena-Roldán

PLoS ONE ◽  
2020 ◽  
Vol 15 (2) ◽  
pp. e0229383
Author(s):  
Leib Litman ◽  
Jonathan Robinson ◽  
Zohn Rosen ◽  
Cheskie Rosenzweig ◽  
Joshua Waxman ◽  
...  

2000 ◽  
Vol 115 (2) ◽  
pp. 431-468 ◽  
Author(s):  
J. H. Tyler ◽  
R. J. Murnane ◽  
J. B. Willett

2021 ◽  
Vol 11 (2) ◽  
Author(s):  
Laura Seppänen ◽  
Clay Spinuzzi ◽  
Seppo Poutanen ◽  
Tuomo Alasoini

Nordic working life studies have mostly focused on the precarious aspects of work mediated via online labor platforms. We follow a different approach and examine the potential of such work to benefit professionals by enhancing their job quality and learning. This qualitative, practice-based study applies the concept ‘co-creation’ to examine how a social form of creating value takes place in Upwork macrotask projects. It then investigates how platform features shape opportunities for co-creation. The data comprise interviews of 15 freelancers residing in Finland. The findings suggest that co-creation is possible in macrotask projects, but the platform does not seem to actively support co-creation. This paper provides insights into the discussion of job quality at platform work and how co-creation on platforms might be developed to support the Nordic labor market model.


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