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来源类型Working Paper
规范类型报告
DOI10.3386/w29996
来源IDWorking Paper 29996
AI Adoption in a Competitive Market
Joshua S. Gans
发表日期2022-05-02
出版年2022
语种英语
摘要Economists have often viewed the adoption of artificial intelligence (AI) as a standard process innovation where we expect that efficiency will drive adoption in competitive markets. This paper models AI based on recent advances in machine learning that allow firms to engage in better prediction. Using prediction of demand, it is demonstrated that AI adoption is a complement to variable inputs whose levels are directly altered by predictions and use is economised by them (that is, labour). It is shown that, in a competitive market, this increases the short-run elasticity of supply and may or may not increase average equilibrium prices. There are generically externalities in adoption with this reducing the profits of non-adoptees when variable inputs are important and increasing them otherwise. Thus, AI does not operate as a standard process innovation and its adoption may confer positive externalities on non-adopting firms. In the long-run, AI adoption is shown to generally lower prices and raise consumer surplus in competitive markets.
主题Microeconomics ; Households and Firms ; Market Structure and Distribution ; Economics of Information ; Development and Growth ; Innovation and R& ; D
URLhttps://www.nber.org/papers/w29996
来源智库National Bureau of Economic Research (United States)
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条目标识符http://119.78.100.153/handle/2XGU8XDN/587669
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GB/T 7714
Joshua S. Gans. AI Adoption in a Competitive Market. 2022.
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