Owen Rust

Digital Advertising, Asymmetric Information and Market Efficiency

On the Internet and social media, we are inundated with digital ads. These advertisements have both demand-side and supply-side economic effects that subtly shape markets and consumption decisions.

The Gig Economy, Labour Market Flexibility and Monopsony Power

Thinking about jumping into the gig economy to enjoy the flexibility of only working when you want to? Economically speaking, you should be aware of the monopsony characteristics of gig platforms!

Platform Envelopment and Predatory Bundling in Digital Markets

Large tech oligopolists have a market advantage through their ability to create digital bundles of products and engage in platform envelopment of competitors' substitutes. What are the economic implications of this practice?

The Economics of Open Source Software and Public Good Provision

Today, open source code is available to Internet users who can incorporate it into their own software. How is the market for software affected by the availability of open source code, and what are the societal welfare implications?

API Economies and the Modularization of Production

Thirty years ago, you had to buy entirely new software when your current program became obsolete. Today, you can download an extension, patch, or upgrade. Thanks to APIs, application programming interfaces, these "modular" additions to software can come from virtually anywhere.

The Economics of AI Hallucinations and Error Costs

To save money on labor, many companies want to use AI to automate basic office functions, from customer service to research. However, AI is prone to making mistakes that are confidently presented as accurate facts. What are the economic implications of unchecked AI use by companies?

Data Pricing and the Economics of Information Markets

In today's modern society, firms use tremendous volumes of data to determine their best strategies for production (reduce costs) and marketing (boost revenue). What are the economic variables in the market for information?

Attention Markets and the Allocation of Cognitive Scarcity

When you go online, your attention is highly coveted by advertisers. There are attention markets where firms pay considerable sums to capture consumers' attention for ads. What are the economic implications of these markets?

AI as Capital Deepening: Substitution and Complementarity in Labour Markets

Economists, business leaders, and labor organizations anxiously await the results of the burgeoning AI revolution on white collar workers. Will workers be automated and replaced by AI, or use AI to increase their own productivity?

API Economies and the Modularization of Production

The dozens of apps on your phone can communicate with each other thanks to Application Programming Interfaces (APIs), which revolutionized software beginning in the year 2000. What are the economic ramifications of modularized production, where add-ons and expansions abound?

The Economics of AI Hallucinations and Error Costs

AI can be great, but "AI hallucinations" are frequent when AI software attempts to plug in data holes with information that it creates. This can include "ghost citations" of false sources of information. What will firms do to limit the dangers of AI error?

Subscription Fatigue and Consumer Optimization in Digital Markets

Streaming entertainment services seemed like a great deal a decade ago. Now, rising costs have reduced consumers' utility significantly. How can streaming firms fight subscription fatigue and keep longtime customers from canceling due to price hikes?

Data Pricing and the Economics of Information Markets

Companies are often willing to pay for data that can help them operate more efficiently and/or boost revenue through improved marketing. What are the economic implications and challenges of information markets?

Attention Markets and the Allocation of Cognitive Scarcity

The rapid rise of the smartphone, social media, and streaming entertainment have created more competition for our attention than ever before. Who wants our attention, and why? Are there any potential economic harms to our attentions being so divided among productivity and entertainment?

The Economics of Trustless Systems and Blockchain Governance

A major role of local governments is record-keeping, especially of asset titles and deeds. Will this bureaucratic role be made more efficient by utilizing Blockchain technology? A look at the economic effects of switching to Blockchain:

Regulatory Arbitrage in Cross-Border Digital Services

Online companies can relocate their headquarters to enjoy lower taxes and regulations; a process known as "jurisdiction shopping." What are the economic implications of jurisdictions trying to attract corporations and their taxes by reducing regulations?

Scarcity by Design: Artificial Constraints in Digital Goods

As the Internet matures, increasing constraints on the creation of digital goods are being imposed, such as creator features being placed behind paywalls. What are the economic reasons for this change?

Platform Exit Barriers and the Economics of Lock-In

Why do some tech companies make it difficult to cancel subscriptions, locking customers into annual subscriptions and auto-renewal if they forget to cancel? A look at the economics of imposing exit barriers on consumers.

Zero-Price Goods and Cross-Subsidisation in Digital Markets

Many consumers use at least one zero-price streaming platform to provide entertainment. Why do companies offer zero-cost digital entertainment? How do they make money? Will this model survive in the long run?

Algorithmic Management and the Economics of Surveillance

Today, many white collar workers are surveilled using "bossware" to log and monitor their online work performance. What are the economic ramification of using algorithmic management and digital surveillance on office employees?

Tokenization and the Repackaging of Illiquid Assets

Tokenization allows the value of durable assets like real estate and heavy equipment to be converted into digital tokens like cryptocurrency and traded. This allows common investors to "buy in" to complex and illiquid markets...but what are the risks?

Digital Identity, Reputation Capital, and Labour Market Signalling

Today, workers need more than charm and a firm handshake to get ahead. They need well-crafted and tailored digital identities that signal professionalism, leadership, and trustworthiness. Why will employers pay a premium for public-facing workers with strong digital identities?

Data Moats and Increasing Returns in the AI Economy

As large firms amass tremendous amounts of user data that they hold in "data moats" inaccessible to rival firms, they can enjoy increasing returns thanks to their ability to AI to analyze this data. Can start-ups still compete in this AI environment?

The Economics of API Ecosystems and Modular Innovation

Today, Application Programming Interfaces (APIs) and modular software development allow for widespread and rapid improvement of programs and apps. How has the macro economy changed by this recent shift toward interoperability and add-on upgrades in software?

Creator Economies and Monopsony Power

Many people aspire to be influencers and content creators for the shot at freedom and creativity while earning an income. But the market for content creators is far closer to a monopsony than many people realize. If you want to earn an income, only a handful of social media giants can offer it.