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Marginal Efficiency of Capital: Definition and How It Works

The marginal efficiency of capital (MEC) is the expected rate of return from an additional unit of capital investment, a term Keynes introdu...
3 min read
The many ads we see while browsing the Internet have behind-the-scenes economic ramifications.

Digital Advertising, Asymmetric Information and Market Efficiency

Published on June 19, 2026

Workers in the gig economy have lots of flexibility regarding when and how much they work, but what about job and wage security?

The Gig Economy, Labour Market Flexibility and Monopsony Power

Published on June 16, 2026

Operating systems and software suites are bundles of programs consolidated into one package.

Platform Envelopment and Predatory Bundling in Digital Markets

Published on June 08, 2026

Open source code is available to everyone, who can edit the code for their individual software needs.

The Economics of Open Source Software and Public Good Provision

Published on June 02, 2026

Thanks to APIs, many programmers can create add-ons and extensions to existing software.

API Economies and the Modularization of Production

Published on May 18, 2026

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

The Economics of AI Hallucinations and Error Costs

Published on May 18, 2026

Today, firms use volumes of data to maximize their efficiency.

Data Pricing and the Economics of Information Markets

Published on May 14, 2026

Firms want to capture your attention so they can advertise their goods and services to you, seeking more sales.

Attention Markets and the Allocation of Cognitive Scarcity

Published on May 14, 2026

What will be the fate of most entry-level white collar workers once the AI revolution is in full swing?

AI as Capital Deepening: Substitution and Complementarity in Labour Markets

Published on April 11, 2026

Today, thanks to Application Programming Interfaces (APIs), diverse software can communicate with each other.

API Economies and the Modularization of Production

Published on April 11, 2026

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Older Posts
Declining loan default rates represented by a downward bar chart and arrow.

What Is Constant Default Rate (CDR)?

The Constant Default Rate (CDR) is an annualised measure of the rate at which loans in a pool default. It is commonly used to assess the per...
2 min read

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