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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
A graphic of a shopping cart filled with cardboard boxes against a blue background. On the ground, there are paper wrapped boxes and bags.
Business economics Competitive markets Information Failure

Comparative Advantage and Platform Power: The Economics Driving the Rise of Digital Commerce

Published on June 26, 2025

A modern industrial style office meeting space with floor to ceiling windows and concrete floors and ceilings offset with a long wooden table and Scandinavian style pink chairs
Behavioural economics Business economics Information Failure

The Economics of Executive Tables: Signalling Theory, Status Goods, and Corporate Identity

Published on June 24, 2025

An assortment of 7 presents wrapped in various holiday wrapping paper like red with white string, brown paper and red ribbons, and white paper with gold ribbons.
Behavioural economics Market Failure Information Failure

Understanding Hyperbolic Discounting and Spending Habits During the Holidays

Published on June 18, 2025

Singapore skyline at dusk. The lights of skyscrapers are glowing and reflecting on the water, while the sun sets behind the buildings.
Business economics Information Failure Competitive markets Global economics

Transaction Cost Economics and Company Registration in Singapore: Why Institutions Matter

Published on June 12, 2025

Graphic of a glowing human brain on top of a black computer chip connected to other parts
Competitive markets Information Failure Innovation & Technology

Comparative Advantage and Content Specialisation in the Age of Generative Search

Published on June 10, 2025

Landscape showing a hilly region with three wind turbines in the foreground
Information Failure Market Failure

Principal-Agent Theory and the Rise of ESG Reporting: Incentives, Institutions, and Regulation

Published on June 08, 2025

A hand placing a red puzzle piece into a puzzle of a ll white pieces
Market Failure Information Failure

Principal–Agent Theory and Affiliate Fraud: Why Performance-Based Marketing Creates Opportunities for Strategic Misreporting

Published on June 07, 2025

Enhancing Tax Fraud Detection: An AI-Driven Framework for Operational Implementation
Information Failure Managing the economy

Enhancing Tax Fraud Detection: An AI-Driven Framework for Operational Implementation

Published on December 15, 2024

Illuminated supertree structures at Gardens by the Bay with Marina Bay Sands at night.
Managing the economy Information Failure

The Economic Challenges and Realities of Building Large-Scale Cities from Scratch

Published on November 07, 2024

Cell towers in twilight.
Behavioural economics Business economics Competitive markets Managing the economy Information Failure

Anonymity, Information Asymmetry, and State Capacity

Published on October 31, 2024

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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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