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Today, thanks to Application Programming Interfaces (APIs), diverse software can communicate with each other.

API Economies and the Modularization of Production

The dozens of apps on your phone can communicate with each other thanks to Application Programming Interfaces (APIs), which revolutionized software beginning in the year 2000. What are the economic ramifications of modularized production, where add-ons and expansions abound?...
4 min read
An image of a metal bank vault focused on the bolt-throwing hand wheel
Market Failure Competitive markets Managing the economy Business economics

The Supply and Demand of Deposits: Why San Diego CD Rates Differ from the National Average

Published on June 11, 2025

Virtual dataroom
Market Failure Price discrimination

Virtual Data Rooms as market institutions

Published on June 09, 2025

Warehouse storage
Market Failure operational-efficiency

Economic Effects of AI-Based Surveillance Technology in Warehousing Industry

Published on June 09, 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

Virtual card payment using phone
Market Failure Business economics

Transaction Cost Economics and The Demise of Wire Transfers

Published on June 06, 2025

Two people shaking hands in a business setting, symbolizing trust, agreement, and cooperation between parties.
Business economics Market Failure Behavioural economics

Information Economics and Signaling: Why Referral Marketing Works in Markets with Imperfect Information

Published on June 05, 2025

Used plastic bottles in a metal crate for recycling
Business economics Global economics Market Failure

The Market for Sustainable Goods: Pigouvian Taxation, Plastics and Waste

Published on June 03, 2025

Image of a crowd of students graduating, standing in their graduation gowns.
Managing the economy Market Failure

Tuition and Administrative Bloat: Examining the Economic Principle of Cost Disease

Published on January 01, 2025

A flag with blue and yellow stripes fluttering against a clear sky.
Market Failure

The Economic Impact of Geopolitical Risk: Insights from the War in Ukraine

Published on November 28, 2024

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Older Posts
AI can work much faster than human employees, but rates of AI hallucinations and other errors remain significant.

The Economics of AI Hallucinations and Error Costs

AI can be great, but "AI hallucinations" are frequent when AI software attempts to plug in data holes with information that it creates. This can include "ghost citations" of false sources of information. What will firms do to limit the dangers of AI error?...
4 min read

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API Economies and the Modularization of Production
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