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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
White flowers on a dark blue background.
Business economics Competitive markets Behavioural economics

Network Economics and Demand Aggregation: How Online Flower Platforms Became Market Makers

Published on January 25, 2025

Cube, cone and donut shapes rendered by computer in 3D
Business economics Behavioural economics Competitive markets

Credence Goods and the Erosion of Trust-Based Pricing: How AI Logo Generators Are Reshaping Design Markets

Published on January 17, 2025

Screen of a computer running video editing software.
Behavioural economics Business economics Competitive markets

Human Capital Theory and the Devaluation of Experience: AI Video Enhancers and the Reallocation of Creative Skill

Published on January 17, 2025

Abstract AI brain represented in polycules.
Behavioural economics Business economics Competitive markets

Transaction Cost Economics and Institutional Lag: Why AI “Humanizer” Tools Thrive in Rapid Innovation Markets

Published on January 16, 2025

Two people working on a laptop, one hand pointing at the screen.
Business economics Behavioural economics Competitive markets

Bundling Theory and Complementarity: How Value Is Created Beyond the Core Product

Published on January 15, 2025

Picture of a shopping center at night.
Behavioural economics

The Behavioral Economics of Everyday Choices: Why We Spend, Save, and Splurge

Published on January 07, 2025

Man sitting on a scooter looking at his phone
Behavioural economics Business economics Competitive markets

The Gig Economy Revolution: Freedom or Precarity?

Published on December 29, 2024

Windfarm at dusk on a green hillside.
Behavioural economics Business economics Competitive markets

Externalities and Pigouvian Policy: Pricing the Full Social Cost of Green Energy in Europe

Published on December 27, 2024

Bundled cardboard boxes with blue tape over them
Behavioural economics Business economics Competitive markets

Economies of Scale and the Socialization of Fixed Costs: Why Size No Longer Belongs Only to Firms

Published on December 25, 2024

Hand holding iphone in front of a laptop.
Behavioural economics Competitive markets

Cost Curves and Fixed Costs: How No-Code Platforms Are Democratizing Software Production

Published on December 21, 2024

Newer Posts
Page 6 of 20
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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