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

API Economies and the Modularization of Production

Thirty years ago, you had to buy entirely new software when your current program became obsolete. Today, you can download an extension, patch, or upgrade. Thanks to APIs, application programming interfaces, these "modular" additions to software can come from virtually anywhere....
4 min read
4 Software developers working at the same table, with laptops open.
Business economics Behavioural economics Competitive markets

Labor Market Institutions and Wage Compression: An Institutional Labor Economics Perspective on Software Developer Salaries Worldwide

Published on February 25, 2025

Security guard at 200 Park Avenue
Behavioural economics Business economics Competitive markets

Credence Goods and Post-Contract Verification: Reputation in the Market for Security Services

Published on February 25, 2025

Image of a trading terminal with black background.
Behavioural economics Business economics Competitive markets

Human Capital Theory and Skill Compression: How Visual Tools Lower Barriers in Financial Markets

Published on February 14, 2025

A highway with 1 motorcycle riding on it.
Behavioural economics Business economics Competitive markets

Public Goods Theory and Private Provision: Why Governments Finance Roads but Do Not Build Them

Published on February 13, 2025

London judicial building in the background.
Behavioural economics Business economics Competitive markets

Asymmetric Information and Credence Goods: Why Choosing a Family Solicitor Is So Difficult

Published on February 10, 2025

Office setting with woman reading a piece of paper in the foreground and man and woman in the background.
Behavioural economics Business economics Competitive markets

Vertical Differentiation and Market Power in Recruitment Micro-Niches: An Industrial Organisation Perspective

Published on February 10, 2025

A swirling pattern of white and light blue lines against a dark green background.
Factors of production Labour markets Business economics Competitive markets

Comparative Advantage in the Age of Automation: The Impact of AI on Global Trade Dynamics

Published on February 09, 2025

Smart phone with yellow background with the text "eSIM" on it.
Behavioural economics Business economics Competitive markets

Transaction Costs, Market Frictions, and Digital Disintermediation in Mobile Connectivity

Published on February 03, 2025

Private jet on tarmac during sunset.
Behavioural economics Business economics Competitive markets

Fixed Costs, Minimum Efficient Scale, and Entry Barriers in Chartered Private Aviation

Published on January 27, 2025

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

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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

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