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The high costs of data centers has limited the expansion of AI for now, creating an oligopoly market.

Compute Constraints and the New Economics of Scarcity in AI

AI is here and creating wonders, but it's not expanding as rapidly as many first predicted. The reason is significant cost and supply constraints, limiting AI data centers to only a handful of large firms. What are the economic implications of this AI bottleneck?...
4 min read
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Factors of production Labour markets Business economics Competitive markets

Comparative Advantage in the Age of Automation: The Impact of AI on Global Trade Dynamics

Published on February 09, 2025

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Managing the economy Labour markets

The Inefficiency of Venture Capital in the Modern Economy: A Result of Oversaturation and Excess Capital

Published on November 12, 2024

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Business economics Managing the economy Labour markets Behavioural economics Global economics

The Impact of Small, Highly Efficient, and Cheap Nuclear Reactors on Developed Economies: A Focus on Energy Costs and Transportation

Published on November 11, 2024

An image of a typewriter with a "Job Application" written in a paper.
Definitions Managing the economy Labour markets

Natural Unemployment Formula

Published on October 07, 2024

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Business economics Labour markets Market Failure

Exponentially Rising Tuition Costs Suppress Economic Growth in the U.S.

Published on October 05, 2024

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Definitions Labour markets

Backward Bending Supply Curve

Published on September 04, 2024

Image of a person counting dollar bills.
Definitions Labour markets

Sticky Wages

Published on August 28, 2024

Image of an office phone, foreground is focuse
Factors of production Managing the economy Labour markets Market Failure

Labor Market Polarization and the Rise of the Virtual AI Agent for Sales Calls: An Application of Routine-Biased Technological Change

Published on July 26, 2024

Image of a computer screen displaying a program used for video editing.
Behavioural economics Business economics Competitive markets Factors of production Managing the economy Labour markets

Labor Market Polarization: AI and the Reshaping of the Video Editing Industry

Published on June 25, 2024

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Behavioural economics Business economics Competitive markets Labour markets

How Nudge Theory Is Transforming Customer Loyalty Through Behavioral Economics

Published on April 28, 2024

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Older Posts
We all have the same 24 hours in a day, meaning our attention is a valuable asset to advertisers!

Attention Markets and the Economics of Time Scarcity

Firms have only limited human attention spans to advertise to, creating attention markets that lead to rising advertising costs. As platforms capture more consumers' attention, what are the economic effects of potential monopolies on this attention?...
4 min read

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