
The Microeconomics of Artificial Intelligence
Joshua Gans(Author)
MIT Press
Will be published approx. on 9. December 2025
Book
Hardback
434 pages
978-0-262-55354-4 (ISBN)
Description
A comprehensive treatment of the microeconomics associated with the adoption and use of artificial intelligence.
It is well-recognized that recent advances in AI are exclusively advances in statistical techniques for prediction. While this may facilitate automation, this result is secondary to AI’s impact on decision-making. From an economics perspective, predictions have their first-order impacts on the efficiency of decision-making.
In The Microeconomics of Artificial Intelligence, Joshua Gans examines AI as prediction that enhances and perhaps enables decision-making, focusing on the impacts that arise within firms or industries rather than broad economy-wide impacts on employment and productivity. He analyzes what the supply and production characteristics of AI are and what the drivers of the demand for AI prediction are. Putting these together, he explores how supply and demand conditions lead to a price for predictions and how this price is shaped by market structure. Finally, from a microeconomics perspective, he explores the key policy trade-offs for antitrust, privacy, and other regulations.
It is well-recognized that recent advances in AI are exclusively advances in statistical techniques for prediction. While this may facilitate automation, this result is secondary to AI’s impact on decision-making. From an economics perspective, predictions have their first-order impacts on the efficiency of decision-making.
In The Microeconomics of Artificial Intelligence, Joshua Gans examines AI as prediction that enhances and perhaps enables decision-making, focusing on the impacts that arise within firms or industries rather than broad economy-wide impacts on employment and productivity. He analyzes what the supply and production characteristics of AI are and what the drivers of the demand for AI prediction are. Putting these together, he explores how supply and demand conditions lead to a price for predictions and how this price is shaped by market structure. Finally, from a microeconomics perspective, he explores the key policy trade-offs for antitrust, privacy, and other regulations.
More details
Language
English
Place of publication
Cambridge (Massachusetts)
United States
Publishing group
MIT Press Ltd
Illustrations
39 FIGURES
Dimensions
Height: 229 mm
Width: 152 mm
Weight
369 gr
ISBN-13
978-0-262-55354-4 (9780262553544)
Copyright in bibliographic data and cover images is held by Nielsen Book Services Limited or by the publishers or by their respective licensors: all rights reserved.
Schweitzer Classification
Other editions
Additional editions

Joshua Gans
The Microeconomics of Artificial Intelligence
E-Book
12/2025
MIT Press
€167.99
Available for download
Person
Joshua Gans
Content
- 1 The Economic Impact of AI
- 2 Advances in Machine Learning
- 3 The Value of Prediction
- 4 Substitutes for Prediction
- 5 Complements to Prediction
- 6 Automation
- 7 System Effects
- Part II: AI Supply
- 8 Generation of Input Data
- 9 Generation of Training Data
- Part III: AI Pricing
- 10 Pricing with Exogenous Judgment
- 11 Pricing with Endogenous Judgment
- 12 Pricing to a Competitive Market
- 13 Pricing to a Monopoly Market
- 14 Prediction for Negotiations
- Part IV: AI Policy
- 15 Market Power
- 16 Collusion
- 17 Privacy Regulation
- 18 Intellectual Property Rights
- 19 Misinformation
- 20 Bias and Discrimination
- 21 Regulating Adoption
- 22 Behavioural and Social Impacts
- Bibliography
- Index