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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
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

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Market Failure

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

Published on November 28, 2024

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Managing the economy Market Failure

The Importance of Government Investment in Technologies for National Economic Protection and Development: A Case Study of Transistor Manufacturing in the United States

Published on November 10, 2024

A one billion dollar bill of Zimbabwean currency.
Managing the economy Market Failure

Understanding Zimbabwe’s Economic Collapse: Causes and Consequences

Published on November 06, 2024

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Definitions Information Failure Market Failure

Adverse Selection in Insurance

Published on October 18, 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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Market Failure Business economics

Potential Effects of the Harris-Walz $25,000 Down Payment Assistance Plan

Published on October 05, 2024

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Managing the economy Market Failure

Housing Shortages and Canada's Rental Controls

Published on September 20, 2024

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Business economics Managing the economy Market Failure

Unpaid Invoices: The Hidden Crisis Facing UK Small Businesses

Published on August 12, 2024

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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

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Older Posts
As streaming subscription costs continue to rise, many customers are experiencing "subscription fatigue" and logging off.

Subscription Fatigue and Consumer Optimization in Digital Markets

Streaming entertainment services seemed like a great deal a decade ago. Now, rising costs have reduced consumers' utility significantly. How can streaming firms fight subscription fatigue and keep longtime customers from canceling due to price hikes?...
4 min read

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