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Although increasingly popular, AI still makes serious mistakes...which could cost companies big bucks in damages.

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?...
5 min read
Robots in Amazon warehouse

The Principle of Comparative Statics in Labor Markets: Analysing the Impact of AI on Employment

Published on February 28, 2025

Sunlit apartment building with fire escapes, featuring a "For Rent" sign; the facade displays a mix of shadows and light.

The Principle of Comparative Statics in Housing Markets: Post-COVID Shifts in Urban Real Estate

Published on February 26, 2025

Price Discrimination and the Airline Industry: Economic Effects of Tiered Pricing Models

Price Discrimination and the Airline Industry: Economic Effects of Tiered Pricing Models

Published on February 26, 2025

Amazon warehouse

The Principle of Creative Destruction: How E-Commerce Has Reshaped Retail Industries

Published on February 24, 2025

Game Theory in Trade Negotiations: Lessons from the US-China Trade War

Game Theory in Trade Negotiations: Lessons from the US-China Trade War

Published on February 15, 2025

Economies of Scale and the Rise of Mega Factories: The Case of Tesla’s Gigafactories

Economies of Scale and the Rise of Mega Factories: The Case of Tesla’s Gigafactories

Published on February 13, 2025

British Airways plane taking off.
Competitive markets Behavioural economics

Price Discrimination in the Airline Industry: A Study of Dynamic Pricing Strategies

Published on January 30, 2025

Moral Hazard and Financial Crises: The 2008 Bailouts of US Financial Institutions

Moral Hazard and Financial Crises: The 2008 Bailouts of US Financial Institutions

Published on January 27, 2025

Covid vaccine phials

Public Goods and Collective Action: The Case of Global Vaccination Campaigns

Published on January 26, 2025

Semiconductors on a circuit board.

The Role of Comparative Advantage in Global Supply Chains: Lessons from Semiconductor Production

Published on January 23, 2025

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Older Posts
AI logo and network powe

Beyond the Chips: Why Cables, Connectors and Power Networks Matter to AI Growth

Artificial intelligence is often presented as a race for faster processors and more capable software. Yet every large AI system also depends...
3 min read

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