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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
Man sitting at a laptop looking at the screen, leaning in, wearing glassees and looking chubby.
Behavioural economics Business economics Competitive markets

Dual Labour Market Theory and the Casualisation of Work in the Age of Micro-Jobs

Published on March 15, 2025

9 blank yellow post its, with the 9th one being placed by a woman's hand.
Behavioural economics Business economics Competitive markets

Why Small Businesses Pay for Checklists: The Economics of Scarcity, Bounded Rationality, and the Shadow Price of Attention

Published on March 12, 2025

Top down view of university auditorium
Behavioural economics Business economics Competitive markets

Labor Market Segmentation and Internal Labor Markets: Dual Labor Market Theory in Government-Aligned University Programs

Published on March 07, 2025

Statue of lady justice being blind.
Behavioural economics Business economics Competitive markets

Access to Justice and Credit Constraints: Credit Rationing in Personal Injury Litigation

Published on March 05, 2025

Laptop With text in orange that says "Join us online" on a white background.
Behavioural economics Business economics Competitive markets

Loss Leaders and Customer Acquisition Cost (CAC): Price Discrimination in the Market for Free Resume Templates

Published on March 03, 2025

Forex currency trading on phone and laptop
Behavioural economics Business economics Competitive markets

Transaction Timing and Option Value: Real Options Theory in the Age of the EUR/USD Live Chart

Published on February 27, 2025

Flowers in the back of a pickup truck on a busy street.
Behavioural economics Business economics Competitive markets

Two-Sided Platforms and Rent Capture: Platform Economics in Digital Flower Delivery

Published on February 26, 2025

Email icons on a blurry black digital background
Behavioural economics Competitive markets

Bundling Theory and Complementarity: Why Hosting and Email Are Sold Together

Published on February 25, 2025

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

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As streaming subscription costs continue to rise, many customers are experiencing "subscription fatigue" and logging off.

Subscription Fatigue and Consumer Optimization in Digital Markets

Streaming entertainment services seemed like a great deal a decade ago. Now, rising costs have reduced consumers' utility significantly. How can streaming firms fight subscription fatigue and keep longtime customers from canceling due to price hikes?...
4 min read

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