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Algorithmic pricing is increasingly shaping market competition, raising concerns about its potential to compromise competitive dynamics. While prior work has shown that reinforcement learning (RL)-based pricing algorithms can lead to tacit…
There is an analogy between machine learning systems and economic entities in that they are both adaptive, and their behaviour is specified in a more-or-less explicit way. It appears that the area of AI that is most analogous to the…
I model the belief formation and decision making processes of economic agents during a monetary policy regime change (an acceleration in the money supply) with a deep reinforcement learning algorithm in the AI literature. I show that when…
There is both much optimism and pessimism around artificial intelligence (AI) today. The optimists are investing millions of dollars, and even in some cases billions of dollars into AI. The pessimists, on the other hand, predict that AI…
This review seeks to present a comprehensive picture of recent discussions in the social sciences of the anticipated impact of AI on the world of work. Issues covered include technological unemployment, algorithmic management, platform work…
As artificial intelligence (AI) continues to reshape the workforce, its current trajectory raises pressing questions about its ultimate purpose. Why does job automation dominate the agenda, even at the expense of human agency and equity?…
Conventional wisdom holds that a misaligned artificial superintelligence (ASI) will destroy humanity. But the problem of constraining a powerful agent is not new. I apply classic economic logic of interjurisdictional competition,…
An array system of coupled maps is proposed as a model for economy evolution. The local dynamics of each map or agent is controlled by two parameters. One of them represents the growth capacity of the agent and the other one is a control…
Generative Artificial Intelligence constitutes a new wave of automation. There is broad agreement among economists that humanity is potentially entering into a period of profound change. However, significant uncertainties and disagreements…
The advent of Large Language Models (LLMs) represents a fundamental shock to the economics of information production. By asymmetrically collapsing the marginal cost of generating low-quality, synthetic content while leaving high-quality…
In this paper, we examine the wide-ranging impact of artificial intelligence on society, focusing on its potential to both help and harm global equity, cognitive abilities, and economic stability. We argue that while artificial intelligence…
In complex systems, many different parts interact in non-obvious ways. Traditional research focuses on a few or a single aspect of the problem so as to analyze it with the tools available. To get a better insight of phenomena that emerge…
In the face of shifting means of production from manual human labor to labor automation, one solution that stands out is the advancement of a Universal Basic Income, UBI to every citizen from the government with no strings attached. The…
Against the backdrop of rising anxiety and discussions on the impact of AI on society, I explore in this article the structural possibilities of AI and automation triggering a new social conflict between the current capitalist elites and…
Technology was created to support and grow Business. Modern business that uses technology efficiently, grows at a phenomenal rate (Statista.com, 2018). The assumption therefore is that businesses that utilize insufficient technology, or use…
The welfare of modern societies has been intrinsically linked to wage labour. With some exceptions, the modern human has to sell her labour-power to be able reproduce biologically and socially. Thus, a lingering fear of technological…
We provide a mechanistic foundation for economic complexity methods. In our model, an economy's ability to produce an activity depends on the joint presence of required capabilities. We analytically derive the Economic Complexity Index…
Digital platforms capitalize on users' labor, often disguising essential contributions as casual activities or consumption, regardless of users' recognition of their efforts. Data annotation, content creation, and engagement with…
This paper develops a micro-founded economic theory of the AI industry by modeling large language models as a distinct asset class-Digital Intelligence Capital-characterized by data-compute complementarities, increasing returns to scale,…
Generative Artificial Intelligence (AI) technologies and large models are producing realistic outputs across various domains, such as images, text, speech, and music. Creating these advanced generative models requires significant resources,…