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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
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

Producer Surplus Equation
Definitions Competitive markets

Producer Surplus Equation

Published on December 12, 2024

AI Robot at an abstract desk with a blue laptop open.
Behavioural economics Business economics Competitive markets

Global Wage Arbitrage vs. Algorithmic Arbitrage: How AI Rewrites Comparative Advantage in the Homework Economy

Published on December 05, 2024

Orange toy bot sitting on the edge of a desk with post its behind it.
Behavioural economics Business economics Competitive markets

Long Tail of AI Services: When Every Micro-Niche Gets a Bot — An Application of Long-Tail Markets & Love-of-Variety Economics

Published on December 05, 2024

Photo of hand holding a smartphone with text "eSIM" on a yellow background.
Behavioural economics Business economics Competitive markets

eSIM Platforms, Roaming, and the Erosion of National Telecom Rents: Market Integration & Platform Economics in Action

Published on December 04, 2024

Image of a warehouse well ordered and neat.
Business economics Competitive markets Behavioural economics Global economics

Modular Capital and the Fragmentation of Industrial Demand: Economies of Scale vs. Economies of Scope

Published on November 22, 2024

Light industrial machinery printing simple electronics.
Business economics Competitive markets Global economics Managing the economy

Lower Entry Barriers: Used Machinery and Small-Firm Formation

Published on November 21, 2024

Four skyscraper taken from the ground floor looking up, in black and white
Behavioural economics Business economics Competitive markets

Information Asymmetry and the Demand for Cross-Border Accounting Expertise

Published on November 15, 2024

Regulatory Arbitrage and the Geography of Online Credit
Business economics Behavioural economics Competitive markets

Regulatory Arbitrage and the Geography of Online Credit

Published on November 15, 2024

Newer Posts
Page 7 of 24
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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