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The numbers

Reputation math: how one star of rating change affects revenue for a $500k/year local business

Last updated July 2, 20261 min read

Publishing Day 74 (July 7, 2026).

This article covers:

  • The Michael Luca / Harvard Business School rating-revenue research, updated for 2026
  • Applied math for a $500k/year single-location business at each half-star band
  • Why the effect is asymmetric — losses hurt more than gains help
  • The break-even calculation on time spent on reputation work

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