Tag Archives: Economics

The Simple Economics of Machine Intelligence

by Ajay Agrawal, Joshua Gans, Avi Goldfarb, Harvard Business Review

The year 1995 was heralded as the beginning of the “New Economy.” Digital communication was set to upend markets and change everything. But economists by and large didn’t buy into the hype. It wasn’t that we didn’t recognize that something changed. It was that we recognized that the old economics lens remained useful for looking at the changes taking place. The economics of the “New Economy” could be described at a high level: Digital technology would cause a reduction in the cost of search and communication. This would lead to more search, more communication, and more activities that go together with search and communication. That’s essentially what happened. Continue reading The Simple Economics of Machine Intelligence