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Tag: economics

The Agency Theory of Chat-Based AI Personas: Insights from Economics

Published by Joni on September 1, 2024

Written in collaboration with Claude-3.5.-Sonnet. All information checked by human author. Background Because of the utility and value of large language models (LLMs) in tasks supporting persona creation and users’ interaction with personas, chat-based AI personas are becoming increasingly prevalent. However, these personas present unique challenges that can be understood through the lens of agency theory (also known as the…

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Your work is non-essential, according to coronavirus

Published by Joni on May 5, 2020

Some of my observations about coronavirus and economy. It’s striking how FEW people we need to sustain many. More than a billion people are in physical isolation, BUT utilities (electricity, water, internet) working perfectly. Really a marvel of innovation and automation that shows how well technology and infrastructure in most places has been built. On the flipside, many people’s work…

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Broken Window Fallacy — Still Relevant?

Published by Joni on March 30, 2017

Do we really need more broken windows? There is a fallacy within broken window fallacy. I will now explain this argument. Essentially, the fallacy (by the classic French economist Frederick Bastiat) argues that “breaking windows”, although brings work for window repairers and thus adds to economic activity, is sub-optimal because of the opportunity cost of using the work to build…

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About moral hazard and banking crises

Published by Joni on March 29, 2017

Introduction The struggle against moral hazard in banking is constant and real. There’s no turn-key solution for eliminating it, but it must be kept in mind at all times by policy makers. Consider the following citation from Wikipedia: “The role of the lender of last resort, and the existence of deposit insurance, both create moral hazard, since they reduce banks’…

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