Yelp knows they have a problem with fake reviews. They say they have it under control thanks to a sophisticated filter system which removes around 25% of all incoming reviews. But a new university study called “Fake it Till You Make It” (a weird name for a University study but whatever. . . ) pretty much says that as long as Yelp exists there will be fraud – not because people are mean and unethical – but because the incentive to get a high rating is worth the risk.
In addition to a study of positive fake reviews, Boston University’s Georgios Zervas and Michael Luca of the Harvard Business School studied incidents of negative review posting against competitors.