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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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Business economics Competitive markets

Make-or-Buy in Software: The Boundaries of the Firm through Transaction Cost Economics

Published on September 03, 2024

Black screen with lines of code on it.
Behavioural economics Business economics Competitive markets

Bayesian Quality Economics: Value of Information & Optimal Thresholds

Published on September 02, 2024

A photo of a man taking picture of a tarmac from a airline terminal.
Behavioural economics Business economics Competitive markets

Platforms, Complements, and Two-Sided Markets: How Airline Stopovers Fuel Urban Micro-Tourism

Published on August 20, 2024

Screen of software development console open, with black background.
Business economics Competitive markets

Innovation Economics and Endogenous Growth Theory: How SaaS Clusters Drive Knowledge Spillovers and Productivity Gains

Published on August 09, 2024

A photo of a cobweb.
Definitions Competitive markets

Cobweb Theory in Economics

Published on August 04, 2024

A photo of a hand holding a phone showing Instagram analytics.
Competitive markets

Global Brands Increasing Their Respective Market Share on Demand Due to Paid Traffic Campaigns

Published on August 02, 2024

A woman standing by a window in Istanbul.
Competitive markets Managing the economy Global economics

External Economies of Scale and the Istanbul Medical Tourism Cluster: How Industrial Clustering Drives Competitive Prices in Global Cosmetic Healthcare

Published on July 25, 2024

Gold mining machinery at night in a desert setting with base camp light bright in the background.
Competitive markets Business economics Definitions

Path Dependence and Lock-In: How SAP Shapes the Economics of Gold and Precious Metals Firms

Published on July 02, 2024

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Business economics Behavioural economics Competitive markets Definitions Information Failure Managing the economy

Excess Capacity and Market Fragmentation: Why So Many Trading Platforms Exist

Published on June 28, 2024

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Behavioural economics Competitive markets Business economics

Spatial Economics and Hyper-Local SEO: Proximity as a Market Differentiator

Published on June 28, 2024

Newer Posts
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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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