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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
The sunk cost fallacy explains that, although the money spent cannot be recovered, people continue to pursue bad investments.

Subscription Creep and the Sunk Cost Fallacy

Published on September 25, 2025

A blonde and a brunette with a laptop and a phone open, showing the words "University".
Business economics Competitive markets Factors of production

Adaptive Learning as Bayesian Updating: Decision Theory in Modern Test Prep

Published on September 18, 2025

Today's digital era can result in subscription fatigue as consumers try to mentally budget their many digital subscriptions.

The Subscription Fatigue Paradox: When Too Many “Small” Payments Hurt Growth

Published on September 17, 2025

Polluting firms can purchase carbon offsets (also known as carbon credits) to reduce their environmental impact. Does it work?

Carbon Offsets and the Market for Guilt Reduction

Published on September 17, 2025

International Money Transfers: Reducing Transaction Costs and Enhancing Efficiency

International Money Transfers: Reducing Transaction Costs and Enhancing Efficiency

Published on September 16, 2025

When you listen to your favorite artist through a subscription service, does he or she get paid fairly for the work they produced?

The Streaming Royalty Puzzle: Who Gets Paid and Why

Published on September 15, 2025

How much would you be willing to pay to ensure that your identity was protected online?

The Rise of Pay-to-Verify: Monetizing Digital Identity

Published on September 15, 2025

In the near future, art generated by AI may be indistinguishable from that created by a human artist.  What then?

The Economics of Generative AI in Creative Industries

Published on September 15, 2025

Many consumers encounter dark patterns in website development that influence them to spend more than they planned.

Dark Patterns and Consumer Choice Architecture

Published on September 05, 2025

Many consumers today purchase bundles of streaming services rather than individual services.

The Economics of Subscription Bundling Wars

Published on September 03, 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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