Good question! Basically, (1) most faster reactions to demand/supply changes, so can quickly move prices to an efficient level; (2) better price discrimination across individuals/markets.
26.11.2024 21:29 β π 1 π 0 π¬ 1 π 0
We show that these empirical observations can be rationalized by a simple model where a monopolist firm with incomplete information about the demand function invests in AI pricing to acquire information. Here is a picture of how our model explains the data!
26.11.2024 16:58 β π 1 π 0 π¬ 1 π 0
Moreover, firms that adopted AI pricing experienced faster growth in sales, employment, assets, and markups, and their stock returns are also more sensitive to high-frequency monetary policy surprises than non-adopters.
26.11.2024 16:58 β π 0 π 0 π¬ 1 π 0
At the firm level, larger and more productive firms are more likely to adopt AI pricing.
26.11.2024 16:57 β π 0 π 0 π¬ 1 π 0
At the aggregate level, the share of AI pricing jobs in all pricing jobs has increased by more than tenfold since 2010. The increase in AI pricing jobs has been broad-based, spreading to more industries than other AI jobs.
26.11.2024 16:57 β π 0 π 0 π¬ 1 π 0
In this paper, we document key stylized facts about the time-series trends and cross-sectional distributions of AI pricing and study its implications for firm performance using the universe of online job posting data from Lightcast.
26.11.2024 16:56 β π 1 π 0 π¬ 1 π 0
First Post! New Paper Alert: "The Rise of AI Pricing: Trends, Driving Forces, and Implications for Firm Performance." (ssrn.com/abstract=500...) with @jonathanjadams.com, Zheng Liu, and Yajie Wang. We are excited to share it with anyone jointly interested in AI and pricing! #EconSky
26.11.2024 16:56 β π 11 π 2 π¬ 2 π 1
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Economist (Brookings, CEPR, NYU) focused on climate economics and climate finance research. See https://glennrudebusch.com/ for more.
Institute Professor, MIT Economics. Co-Director of @mitshapingwork.bsky.social. Author of Why Nations Fail, The Narrow Corridor, and Power & Progress.
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Personal Account. Director of Economics, The Budget Lab at Yale University. Former Chief Economist, White House Council of Economic Advisers.
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Senior Economist at the Federal Reserve Board of Governors. I am working on macroeconomics, taxation, and finance.
https://sites.google.com/site/immoschott/research
Economist. Macro, inequality, public finance, international finance, asset pricing, labor.
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Wharton Finance prof researching empirical macro and household finance. Minneapolis -> Macalester -> Northwestern Econ PhD
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Economics professor at UC Berkeley.
https://eml.berkeley.edu/~jsteinsson/
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@carletoncollege. Macroeconomic expectations, monetary policy, Treasury markets, #TeachEcon
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Macroeconomist @ Frankfurt School & Research Director @ ifo Institute.
www.benjaminborn.de
