Kai Zhu

Kai Zhu

朱开 · /kai joo/
Assistant Professor, Bocconi University

I study the economics of digitization, with a focus on how digitization and artificial intelligence transform markets, media, and society. My research investigates questions at the intersection of technology and economics: How does AI reshape knowledge production and information access? How do platform design choices affect market outcomes and creator livelihoods? How do digital media shape public discourse?

To answer these questions, I combine economic theory with computational methods—including causal inference, machine learning, and natural language processing—to extract insights from large-scale structured and unstructured data. My work has been published in Management Science, Information Systems Research, and Production and Operations Management, among others.

Digital Platforms Economics of Digitization Artificial Intelligence Computational Social Science

Research

Publications
The AI Democratization Paradox: Evidence from Decentralized Knowledge Communities
Management Science (2026)
with Dylan Walker (Chapman University)
This paper studies the deployment of neural machine translation across more than 100 Wikipedia language communities and uncovers what we term the “AI Democratization Paradox,” where the technology simultaneously drives democratizing and concentrating forces. AI lowered barriers, leading to a substantial increase in content creation across diverse target languages without sacrificing quality or readership. However, the benefits were concentrated: well-resourced communities captured disproportionate gains—3–4 times larger than mid-tier editions. While editors actively leveraged AI to address representation gaps, translating female biographies at twice the expected rate, structural constraints limited the impact in high-need areas.
Monetizing Platforms: An Empirical Analysis of Supply and Demand Responses to Entry Costs in Two-sided Markets
Management Science (2025)
with Qiaoni Shi (Bocconi University) and Shrabastee Banerjee (Tilburg University)
This paper investigates the consequences of monetizing a marketplace for product promotion within a digital platform, specifically the Giveaways program on Goodreads.com. Using a natural experiment and fine-grained platform data from 2016 to 2020, we examine how introducing a fixed entry cost for content creators affected both supply and demand. We find a substantial decrease in overall program participation, particularly among indie publishers and self-published authors, leading to increased market concentration. We also document reduced genre diversity, with popular genres becoming more dominant at the expense of niche categories, and intensified promotional effects characterized by higher review volume but lower average ratings.
Negative Peer Feedback and User Content Generation: Evidence from a Restaurant Review Platform
Production and Operations Management (2024)
with Warut Khern-Am-Nual (McGill University) and Yinan Yu (University of Oklahoma)
This paper investigates how negative peer feedback shapes user behavior in an online review platform. Leveraging fine-grained digital trace data of users throughout their tenure on the platform, we find that negative feedback improves user retention on the platform relative to users who receive no feedback at all. For users who are retained and write their next reviews, negative feedback improves review frequency and quality. These findings demonstrate that, contrary to conventional wisdom, negative peer feedback can benefit the platform’s welfare as it increases user engagement and retention, and that no feedback can be a worse alternative.
If a Tree Falls in the Forest: Presidential Press Conferences and Early Media Narratives about the COVID-19 Crisis
Journal of Quantitative Description (2022)
with Masha Krupenkin (Boston College), Dylan Walker (Chapman University), David Rothschild (Microsoft)
Throughout the COVID-19 crisis, as we confronted questions about social distancing, mask wearing, and vaccines, public safety experts warned that the consequences of a misinformed population would be particularly dire. Through automated text analysis of complete transcripts of national cable, network, and local news, we explore their narratives surrounding the COVID-19 pandemic and characterize the differences in which topics were covered and how they were covered by various media sources. Our analysis reveals polarized narratives around blame, racial and economic disparities, and scientific conclusions about COVID-19.
Content Growth and Attention Contagion in Information Networks: Addressing Information Poverty on Wikipedia
Information Systems Research (2020)
with Dylan Walker (Chapman University) and Lev Muchnik (Hebrew University)
Open collaboration platforms have fundamentally changed the way that knowledge is produced, disseminated, and consumed. We leverage a large-scale natural experiment to study how exogenous content contributions to Wikipedia articles affect the attention that they attract and how that attention spills over to other articles in the network. Results reveal that exogenously added content leads to significant, substantial, and long-term increases in both content consumption and subsequent contributions. Furthermore, we find significant attention spillover to downstream hyperlinked articles.
Working Papers
Adverse Selection in the AI Data Commons
Under Review
Generative AI depends on high-quality web content, yet no market compensates its producers. We document adverse selection in this AI data commons: facing a binary opt-out choice, the highest-quality producers exit first, degrading the remaining commons. Studying media and news sites at scale, we find a steep quality-blocking gradient: high-factual outlets block at nearly six times the rate of low-factual sources, with misinformation sources remaining most accessible. Publishers strategically target training crawlers while blocking search crawlers at lower rates. Event studies trace this divergence to the introduction of AI-specific opt-out mechanisms, and simulations show the quality degradation stems from the compositional pattern of exit. Current opt-out regimes produce adverse selection by design; our findings call for market mechanisms that properly compensate content producers.
Monetizing through Subscriptions: Evidence from Creators in the Long Tail
Revise & Resubmit · Marketing Science
with Xin Zhou (Bocconi University)
This paper studies how platforms are increasingly offering direct monetization opportunities through creator-viewer subscriptions, contrasting with traditional reach-focused advertising models. We examine the impact of the Twitch Affiliate Program, which significantly lowered entry barriers to paid channel subscriptions and micro-donations. Using a time-shifted difference-in-differences design, we find that the program substantially increased content supply, with smaller creators more than doubling their streaming hours. Monetization access professionalizes creator behavior, leading to more deliberate content strategies and improved performance.
Quantifying Consumer-Product Fit: A Representation Learning Approach
Revise & Resubmit · Journal of Marketing Research
with Qiaoni Shi (Bocconi University) and Christian Hotz-Behofsits (WU Vienna)
We develop a novel representation learning framework to quantify the fit between consumers and products using large-scale observational data. Our approach learns latent representations that capture nuanced preference patterns beyond traditional collaborative filtering. We demonstrate the method on book consumption data and show that our learned representations substantially improve prediction of consumer choices and reveal interpretable dimensions of consumer-product compatibility.
Work in Progress
AI Search and Web Traffic
In Progress
with Qiaoni Shi (Bocconi University)
Welfare Effects of AI-powered Digital Content
In Progress
with Joel Waldfogel (University of Minnesota) and Luis Aguiar (University of Zurich)
Social Network, Political Identity, and Demand for Firearms
In Progress
with Jessica Kim (Bocconi University)