This week on Upstream, we’re releasing a conversation between Patrick McKenzie and Byrne Hobart where they navigate the compelling terrains of in-app purchases and restaurant economics. They dive into the monetization strategies of video games and the influence of food delivery platforms like DoorDash on pricing and menu designs and explore the bridge between finance, technology, and human behavior through airport currency exchange models and the emerging role of AI in economic data processing.

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RECOMMENDED PODCASTS:

🎙️Complex Systems with Patrick McKenzie

Patrick McKenzie (@patio11) talks to experts who understand the complicated but not unknowable systems we rely on. You might be surprised at how quickly Patrick and his guests can put you in the top 1% of understanding for stock trading, tech hiring, and more.

Spotify: https://open.spotify.com/show/3Mos4VE3figVXleHDqfXOH 

Apple: https://podcasts.apple.com/us/podcast/complex-systems-with-patrick-mckenzie-patio11/id1753399812

🎙️The Riff with Byrne Hobart and Erik Torenberg

Investor and writer of the popular newsletter The Diff, Byrne Hobart, and co-host Erik Torenberg discuss today’s major inflection points in technology, business, and markets – and help listeners build a diversified portfolio of trends and ideas for the future. 

Spotify: https://open.spotify.com/show/6rANlV54GCARLgMOtpkzKt?si=fa34868d46b94584 

Apple: https://podcasts.apple.com/us/podcast/the-riff-with-byrne-hobart-and-erik-torenberg/id1716646486 

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LINKS:

Bits About Money: https://www.bitsaboutmoney.com/ 

The Diff: https://thediff.co/ 

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X / TWITTER:

https://twitter.com/byrnehobart 

https://twitter.com/patio11 

https://twitter.com/Upstream__Pod 

https://twitter.com/TurpentineMedia 

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TIMESTAMPS:

(00:00) Intro

(01:05) The economics of in-app purchases

(04:45) Understanding consumer behavior in gaming

(07:52) The role of high spenders in the gaming industry

(20:48) Bespoke software and high-end customization

(24:14) Sponsors: Notion | Squad

(28:04) The evolution of restaurant websites

(35:27) The future of delivery apps and restaurant economics

(43:39) The economics of portion sizes

(45:24) Restaurant groups and concepts

(48:44) The role of certainty in dining

(49:09) Business meals and social signals

(51:18) The evolution of fast food

(55:03) The tech cafeteria phenomenon

(01:02:43) The power of written records

(01:06:31) Exploring ai and memory

(01:13:58) The future of search and ai

(01:25:10) Wrap