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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
Stock ticker and charting software
Innovation & Technology

The New Economics of Crypto Exchanges: How Security, Liquidity and Compliance Became Barriers to Entry

Published on June 26, 2025

A closeup of a hand with a marker writing on a transparent white board
Innovation & Technology Business economics Global economics

Creative Destruction: How Entrepreneurship, Innovation, and Business Formation Drive Economic Growth

Published on June 25, 2025

A graphic of a purple, shiny 3D cloud plugged into a microprocessing chip
Business economics Competitive markets Innovation & Technology

SaaS and the Subscription Economy: How Cloud Software Is Reshaping Business Competition and Market Concentration

Published on June 20, 2025

Red and green ticker marks from the user interface of a real-time market data platform
Innovation & Technology

Network Effects: Why Financial Software Markets Keep Tipping Toward a Handful of Winners

Published on June 16, 2025

Aerial view of Earth from space showing the interconnection of lights between cities
Business economics Competitive markets Innovation & Technology

Comparative Advantage in the Digital Coordination Economy: How Specialisation Evolves as Transaction Costs Fall

Published on June 10, 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

Innovation in the Driver's Seat: The Economics of Modern Automotive Technology
Innovation & Technology

Innovation in the Driver's Seat: The Economics of Modern Automotive Technology

Published on June 07, 2025

Professional reviewing data on laptop outside a server room representing cloud computing and digital infrastructure
Innovation & Technology

Residential Proxies in 2026: How Information Failure and Barriers to Entry Shape the Market

Published on June 07, 2025

Newer Posts
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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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