Indiana has lost a superstar. Bill Oesterle passed away, as reported last week in this newspaper and elsewhere. Bill earned an honors undergraduate economics degree from Purdue and a Harvard M.B.A.  In February 2022, Bill spoke to the student-led  Ball State Economics Club in February 2022. Bill gave us an inside view into the growth, challenges, and ultimate triumph of the company he was CEO and co-founder of- Angie’s List, now called Angi. He told us it was really all about economics. 

Along with our colleague Michael Hicks, we also engaged in some friendly and productive sparring over approaches to economic development. Bill planned to visit with Ball State students and faculty again this past March, but unfortunately, his health did not allow it. 

So how was the history of Angie’s List all about economics? Information is central to the operation of an economy. Freely determined prices are both based on information and loaded with information. However, prices can never signal all the information necessary to promote efficient resource allocation. Non-price factors also come into play. 

One of the realities of any economy is asymmetric information. Asymmetric information is a fancy way of saying that in certain market transactions, one side of a market knows more than the other. The side that knows more about a product or service’s quality/attributes can take advantage of the other side. The shady home repair man or used car dealer comes to mind. Though both common and statutory law provides some relief, the seller’s reputational capital is also a powerful remedy to the problem. And there can be markets for information. What if a consumer could find a reliable source of information on potential service providers? 

While academics like Bohanon, Horowitz, and Hicks talk about the issue, Bill Oesterle did something about it by, in effect, inventing a new market for reliable information. Of course, there were challenges along the way. How will this newfangled business get consumers to share information? How will they protect sellers from unfair and vicious allegations? And how will such an enterprise generate enough revenue to cover its costs and reward its investors? But those were precisely the problems Bill liked to wrangle with and solve. His enthusiasm, good cheer, and relentless spirit were as much a lesson to us all as his words. Thank you, Bill, for your insights, inspiration, and your life well lived. Rest in Peace, good friend.