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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
NYC Times Square at night with cars flashing by and a crowd on the sidewalk.
Managing the economy

Pigovian Taxes and Urban Mobility: Economic Implications of New York's $9 Congestion Toll

Published on April 05, 2025

Purple text that says "The Exchange"
Behavioural economics Business economics

Rational Expectations and Volatility in Foreign Exchange Markets

Published on April 02, 2025

The ease of linking Apple products for digital use is part of a network effect that increases its popularity.

Network Effects and the Rise of Big Tech: Analyzing Market Dominance in the Digital Economy

Published on April 01, 2025

Book with text on it.
Behavioural economics Business economics Competitive markets

Public Goods and the Economics of Cheap Content Replication

Published on March 30, 2025

I Need Your Clothes, Your Boots, and Your Motorcycle: The Future of Visual Search in Retail

Published on March 30, 2025

When shopping online, could you be charged a personalized price based on an AI analysis of your income and habits?

Price Discrimination in the Digital Age: How Companies Maximize Profits Through Personalized Pricing

Published on March 30, 2025

SPY screen showing returns for the day and line chart.

Rational Expectations and the Market Impact of Economic Calendars

Published on March 30, 2025

A college classroom during a math lecture, with a professor standing at the front writing equations on large chalkboards while students sit facing forward, taking notes.

Student Employment and the Economics of Labour Supply

Published on March 30, 2025

Your airline ticket price can vary considerably based on time of purchase and amount of baggage.

Why Airline Ticket Prices Fluctuate: Understanding Dynamic Pricing Strategies

Published on March 28, 2025

A hand in a blue sleeve pulls a yellow block from a stack of red wooden blocks, with blinds and sunlight in the background.

Enterprise Risk Management and Decision-Making Under Uncertainty

Published on March 27, 2025

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AI logo and network powe

Beyond the Chips: Why Cables, Connectors and Power Networks Matter to AI Growth

Artificial intelligence is often presented as a race for faster processors and more capable software. Yet every large AI system also depends...
3 min read

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