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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
Could sophisticated AI software quickly determine the maximum you would pay for any item, and charge you accordingly?

Surge Pricing in the Age of AI: Fairness or Exploitation?

Published on August 29, 2025

A sign signaling the pick-up location for ride share drivers, who are a major component of the gig economy.

The Gig Worker’s Dilemma: Flexibility vs. Stability

Published on August 26, 2025

Online gamers can spend significant sums of money through in-game purchases, raising questions about behavioral nudges and gaming.

The Free-to-Play Game Economy: Selling Pixels for Billions

Published on August 26, 2025

Thousands of content creators post daily on YouTube, TikTok, and other social media sites in hopes of "going viral."

The Economics of “Going Viral”: Attention as a Scarce Resource

Published on August 26, 2025

Cloud data storage has rapidly become a huge industry, with some unexpected third party costs.

Digital Hoarding: The Economics of Data Storage

Published on August 19, 2025

The increased incidence of extreme weather due to climate change is stressing insurance markets.

Climate Insurance and the Pricing of Risk in an Uncertain World

Published on August 14, 2025

More and more people are turning to AI chatbots for companionship and relationships, raising economic and ethical debates.

The Economics of Loneliness: Markets for Companionship

Published on August 14, 2025

Some remote workers are accused of time theft for only working a portion of their expected working hours.

The Economics of Time Theft: Productivity, Surveillance, and Remote Work

Published on August 09, 2025

An Amazon package, which can often be returned for no cost if the customer is dissatisfied.

The Shadow Cost of Free Returns: E-Commerce and the Reverse Logistics Crisis

Published on July 29, 2025

Cryptocurrency owners can engage in decentralized finance (DeFi) by lending out their crypto through automated lending pools.

Decentralized Finance (DeFi) and the Future of Banking

Published on July 29, 2025

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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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