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

API Economies and the Modularization of Production

The dozens of apps on your phone can communicate with each other thanks to Application Programming Interfaces (APIs), which revolutionized software beginning in the year 2000. What are the economic ramifications of modularized production, where add-ons and expansions abound?...
4 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

Laptop open slightly with white screen and a half folded paper on the keyboard.
Business economics

New Institutional Economics and the Substitution of Legal Infrastructure: How Global Hiring Platforms Reorganize Employment

Published on January 24, 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

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

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

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

Examples of Threats in SWOT Analysis
Definitions Business economics

Examples of Threats in SWOT Analysis

Published on December 16, 2024

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AI can work much faster than human employees, but rates of AI hallucinations and other errors remain significant.

The Economics of AI Hallucinations and Error Costs

AI can be great, but "AI hallucinations" are frequent when AI software attempts to plug in data holes with information that it creates. This can include "ghost citations" of false sources of information. What will firms do to limit the dangers of AI error?...
4 min read

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