Ski areas exaggerate reports of new snow if they think they can get
away with it, according to a study of data from 440 North American
resorts. But, in a triumph for crowdsourcing, the introduction of a
smartphone app that lets skiers post their own firsthand reports made
the resorts become honest. (click below to read more)
Fresh snow inspires people to hit the
slopes, creating a strong incentive for resorts to fib. On average,
researchers found, each additional inch reported by a resort boosts
website visits 61%. From 2004 through 2008, ski areas reported 23% more
new snow on weekends, when they make most of their money, than weekdays,
a pattern unsupported by weather data.
It wasn't clear how many skiers were taken in by the ruse; consumers
seemed to discount ski areas' weekend snow reports by about as much as
they were puffed up. But in January 2009, SkiReport.com introduced a new
feature in its iPhone app that allowed skiers to post reports directly
from ski lifts. At resorts that had iPhone coverage, snowfall
exaggeration promptly ended, the study found.
"Wintertime for Deceptive Advertising?" Jonathan Zinman and Eric Zitzewitz, NBER Working Paper (February)
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