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Matthew Leisten @leistenecon.bsky.social · Apr 7

We hope this paper offers policymakers important guidance about the winners and losers from privacy regulation and how it interacts w/ multiproduct monopoly.

Big lesson: focus on ways to protect poorer consumers' privacy specifically!

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Matthew Leisten @leistenecon.bsky.social · Apr 7

Last: what if consumers don't like their data being *used* for ads? We show that this can lead to the poorest & wealthiest consumers being made better off, but the lower-middle class is harmed.

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Matthew Leisten @leistenecon.bsky.social · Apr 7

Second: what if consumers intrinsically value privacy? Doesn't change their choices, but privacy regulation shifts everybody's preferences upward. If the wealthy value their privacy more than the poor, then privacy policy becomes even more regressive (but obviously good for CS)

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Matthew Leisten @leistenecon.bsky.social · Apr 7

We explore 3 extensions. First: what if wealthy eyeballs are more valuable than poor ones to advertisers? Turns out everything goes through *if* wealthy eyeball profitability is most impacted by privacy regulation.

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Matthew Leisten @leistenecon.bsky.social · Apr 7

Who gains? Inframarginal premium consumers (wealthy) who pay lower p. Who loses? Inframarginal free consumers (poor) who face higher a. Distributionally bad! We show this using my (Leisten 2024) "inequality-adjusted consumer surplus"

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Matthew Leisten @leistenecon.bsky.social · Apr 7

Privacy regulation worsens targeting, lowers advertiser WTP, and induces the platform to *shift* users from ad-supported to premium by raising a & lowering p

(This is only true in a "full coverage separating equilibrium" which we define and provide conditions for in the paper)

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Matthew Leisten @leistenecon.bsky.social · Apr 7

We build a simple model:
- Poorer consumers have lower (higher) marginal aversion to ads (spending money)
- Monopoly freemium platform chooses ad load (a) and premium price (p)
- Profits are premium revenue plus ad-revenue, which is per-eyeball advertiser WTP * number of eyeballs

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Matthew Leisten @leistenecon.bsky.social · Apr 7

Freemium: a free ad-supported version and a paid ad-free version, is everywhere these days. Youtube, Spotify, Netflix, etc.

Why offer the ad-supported version? You can get price-sensitive (poorer) customers but still monetize their attention

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Matthew Leisten @leistenecon.bsky.social · Apr 7

#EconSky 🚨NEW PAPER with Ben Casner:

We present a theory of why privacy regulation can be distributionally bad when platforms offer freemium models

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Matthew Leisten @leistenecon.bsky.social · Apr 4

Never figured you to be an MMT guy but ok

Matthew Leisten @leistenecon.bsky.social · Apr 4

CHOOSE YOUR FIGHTER

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Matthew Leisten @leistenecon.bsky.social · Feb 15

#EconSky My first publication is looking like it might be a good one!

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Matthew Leisten @leistenecon.bsky.social · Feb 14

What people think I'm doing when I say I'm "working on my egg paper" vs what I'm actually doing

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Matthew Leisten @leistenecon.bsky.social · Jan 18

"We thank the anonymous referees for their constructive feedback. In addressing their comments, we feel we have significantly improved the soup"

Catherine Rampell @crampell.bsky.social · Jan 18

This defeats the entire purpose of soup, which is that it’s wet www.nbcnews.com/pop-culture/...

Progresso launches Soup Drops, a hard candy that's 'soup you can suck on'

Soup Drops are packed with chicken noodle soup flavors and are available for a limited time during National Soup Month.

www.nbcnews.com

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Matthew Leisten @leistenecon.bsky.social · Jan 18

#EconSky Note: my online seminar on "Open(?) AI" has been **rescheduled** to Jan 27 because of the holiday. Thread describing the paper below!

bsky.app/profile/leis...

Matthew Leisten @leistenecon.bsky.social · Nov 14

🚨 #EconSky New paper! There's been much advocacy for “open” or “open-weights” AI models. But what are the equilibrium predictions relative to closed AI or a social planner? The econ of AI is new and distinct from other software, so we need new models. That’s where I come in!

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Reposted by Matthew Leisten

Matthew Leisten @leistenecon.bsky.social · Dec 4

📉📈 I'm giving a (virtual) talk on "Open(?) AI" hosted by BU Questrom next month! Details/registration at the link, description of the paper below!

www.bu.edu/dbi/events/o...

bsky.app/profile/did:...

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Matthew Leisten @leistenecon.bsky.social · Dec 31

Made my schedule for #ASSA2025! Fully expecting to be able to attend all these sessions by bending time and logic to my will

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Matthew Leisten @leistenecon.bsky.social · Dec 27

#EconSky I'll be at ASSAs next week! Feel free to hit me up if you want to drink coffee and chat research, and be sure to check out this exciting, inter-field session I organized:

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Reposted by Matthew Leisten

Chris Adams @chrisadamsecon.bsky.social · Dec 8

www.routledge.com/Game-Theory-...

Game Theory for Applied Econometricians: Data Analytics with R

Over the last 30 years the practice and use of game theory has changed dramatically, yet textbooks continue to present game theory with algebraic formalism and toy models. This book, on the other hand...

www.routledge.com

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Matthew Leisten @leistenecon.bsky.social · Dec 4

📉📈 I'm giving a (virtual) talk on "Open(?) AI" hosted by BU Questrom next month! Details/registration at the link, description of the paper below!

www.bu.edu/dbi/events/o...

bsky.app/profile/did:...

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Matthew Leisten @leistenecon.bsky.social · Dec 2

Weird best response function

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Reposted by Matthew Leisten

ASSA Meeting @assameeting.bsky.social · Dec 2

Don't forget to register for the #ASSA2025 Annual Meeting in San Francisco! Early bird registration ends tomorrow, Dec. 3. Register now! #econsky aeaweb.org/conference/

ASSA 2025 Annual Meeting

aeaweb.org

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Matthew Leisten @leistenecon.bsky.social · Dec 2

My dad died while I was on the market (albeit during flyout season). Submit applications to anyplace that still allows submissions (even if the deadline has nominally passed). Then reach out to your advisor. Your committee may be able to make some calls to explain your circumstances. Good luck!

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Matthew Leisten @leistenecon.bsky.social · Dec 1

If we are talking about this paper, then yes omg what a tour de force

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Matthew Leisten @leistenecon.bsky.social · Dec 1

Yeah, I'm all for better frameworks! I'm also sympathetic to everyone who takes a sigh of relief when someone agrees that the market they're studying is plausibly not two-sided

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