Inflated positivity: The influence of the two-way review system on consumer ratings in the sharing economy

Due to a positivity bias, the accuracy of online reviews on accommodation-sharing platforms has been called into question. Utilizing social presence theory and two experimental studies, we found that the two-way (vs. one-way) review system, owing to social and observational cues associated with both the sharing platform and the review system, results in a higher guest review rating for a negative experience. Additionally, through a moderated mediation, we found that this effect is contingent on the social presence dynamic of the service provider, with the effect of the two-way review system being negated for a property management company. Finally, we show that this relationship is driven by impression management. The findings of this research present novel insights into the two-way review system, providing both theoretical and practical implications for peer-to-peer platforms and traditional hospitality brands with regard to review system management.