I’m not writing an obituary for the professional critic

I’m a huge fan of some of my friends’ blogsmulti platform blogs, and websites that rely on the wisdom of their users.

As many blogs and community sites feature reviews, some say the professional critic is dying.  For example, in The New York Times, Professor Randall Stross writes:

“Like others, I used to rely on professional critics for guidance in many domains — restaurants, movies, books……sites that welcome customer reviews have evolved significantly….dedicated reviewers produce work that, in quantity and quality, increasingly approaches that of their professional forebears….”

I certainly agree with Professor Stross that professionals will never produce the same quantity of content as a community.  Wikipedia has millions more entries than other encyclopedias.  And having some reviews available for the local sandwich shop is better than none, so there is value in quantity.

But the increasing availability of great content online does not mean the decline of the professional critic.

Before the internet, how many people were reading Ruth Reichl’s restaurant reviews in the New York Times print edition, and how many are now reading Frank Bruni’s print reviews and online blog?  How many people used to read or watch Siskel and Ebert, and how many now read or watch or post online to Ebert?

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Watch out, Founders! Early decisions lead to awful user generated content

Online communities have a tough time getting started. There is a chicken and egg problem. Who wants to join a community that doesn’t exist? To solve this dilemma, Yelp’s CEO openly admits that early on the company decided to pay reviewers and now pays “community managers” in major cities. A second founding decision was to focus on getting the most reviews possible with its user rewards system.

Yelp’s founding community in any city is those who are willing to contribute reviews for low pay (i’m assuming rates did not attract top writers and bloggers…because it didn’t). For example, for many moderate and expensive restaurants, reviews often cite discounted Restaurant Week specials. Yelp is now challenged with broadening its set of active contributors in order to get broadly applicable content for the larger audience it is attracting.

The second original decision founders made was to encourage the community to review often. Online Karma awards are given for Firsts, and users compete to see who can have the most reviews or Firsts. As the community prefers to be heard rather than rated, Yelp accepts reviews about old meals or reviews that focus on the circumstances of the meal. Sadly, this has led to a proliferation of low quality reviews for restaurants, a category where one size does NOT fit all.

I think Yelp has a lot of potential (17 million unique visitors a month is already impressive), but right now the main feature that helps me is the mashup of google maps, yellow pages, and pictures.

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How useless information makes great deals

Everything at Amazon.com is marked down from some higher price. But is that marked down price a good deal? In a Washington Post article by Michael Rosenwald, behavioral economists note that we have a tough time knowing how to value the utility we will get from most of the stuff we buy. We struggle to figure out the real “value to me” of an iPhone or movie.

Retailers like us to think the value of a deal is measured by the difference between the “original price” and the “current price”. Instead, we should look at the difference between the “value to me” and the “current price”.

Given this difficulty we have setting prices, its hard to believe a perfect exists. Or if it does exist, its based on imperfect prices.

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