Related papers: Vertical tacit collusion in AI-mediated markets
Classic no-trade theorems attribute trade to heterogeneous beliefs. We re-examine this conclusion for AI agents, asking if trade can arise from computational limitations, under common beliefs. We model agents' bounded computational…
Large Language Models (LLMs) have demonstrated remarkable potential as autonomous agents, approaching human-expert performance through advanced reasoning and tool orchestration. However, decision-making in fully dynamic and live…
Feedback from artificial intelligence (AI) is increasingly easy to access and research has already established that people learn from it. But individuals choose when and how to seek such feedback, and more engaged and motivated individuals…
As AI systems gain increasing autonomy and execution capability, the number of discovered security vulnerabilities continues to rise. However, many of these vulnerabilities are not fundamentally novel, but instead reflect recurring classes…
As autonomous AI agents increasingly mediate online platform markets, a fundamental question emerges: do these markets generate stable strategic outcomes? In repeated strategic environments, the Nash equilibrium provides a natural benchmark…
Classification algorithms based on Artificial Intelligence (AI) are nowadays applied in high-stakes decisions in finance, healthcare, criminal justice, or education. Individuals can strategically adapt to the information gathered about…
The integration of AI agents into economic markets fundamentally alters the landscape of strategic interaction. We investigate the economic implications of expanding the set of available technologies in three canonical game-theoretic…
Commercial insurance underwriting is a labor-intensive process that requires manual review of extensive documentation to assess risk and determine policy pricing. While AI offers substantial efficiency improvements, existing solutions lack…
AI tools are being deployed over MBSE models today, and those models were not designed for this kind of consumption. The problem is not simply that tools hallucinate: well-prompted frontier models produce competent, useful output over a…
As e-commerce rapidly integrates artificial intelligence for content creation and product recommendations, these technologies offer significant benefits in personalization and efficiency. AI-driven systems automate product descriptions,…
I develop a theoretical model to examine how the rise of autonomous AI (artificial intelligence) agents disrupts two-sided digital advertising markets. Through this framework, I demonstrate that users' rational, private decisions to…
The rise of artificial intelligence (A.I.) based systems is already offering substantial benefits to the society as a whole. However, these systems may also enclose potential conflicts and unintended consequences. Notably, people will tend…
Markets are a promising way to coordinate AI agent activity for similar reasons to those used to justify markets more broadly. In order to effectively participate in markets, agents need to have informative signals of their own ability to…
Motivated by recent progress on pricing in the AI literature, we study marketplaces that contain multiple vendors offering identical or similar products and unit-demand buyers with different valuations on these vendors. The objective of…
Agentic AI systems that autonomously perform service tasks are entering customer service operations. However, limited evidence exists on how human interventions shape service outcomes when agentic AI failures create both cognitive and…
Agentic Artificial Intelligence (AI) can autonomously pursue long-term goals, make decisions, and execute complex, multi-turn workflows. Unlike traditional generative AI, which responds reactively to prompts, agentic AI proactively…
Generative and agentic artificial intelligence is entering financial markets faster than existing governance can adapt. Current model-risk frameworks assume static, well-specified algorithms and one-time validations; large language models…
AI services are known to have unstable behavior when subjected to changes in data, models or users. Such behaviors, whether triggered by omission or commission, lead to trust issues when AI works with humans. The current approach of…
This position paper argues that there is an urgent need to restructure markets for the information that goes into AI systems. Specifically, producers of information goods (such as journalists, researchers, and creative professionals) need…
As AI becomes embedded in customer-facing systems, ethical scrutiny has largely focused on models, data, and governance. Far less attention has been paid to how AI is experienced through user-facing design. This commentary argues that many…