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Thanks to APIs, many programmers can create add-ons and extensions to existing software.

API Economies and the Modularization of Production

Thirty years ago, you had to buy entirely new software when your current program became obsolete. Today, you can download an extension, patch, or upgrade. Thanks to APIs, application programming interfaces, these "modular" additions to software can come from virtually anywhere....
4 min read
Chinese futuristic skyscraper
Behavioural economics Business economics Competitive markets

Debt Sustainability and Intertemporal Budget Constraints: Development Traps in Belt and Road Financing

Published on March 08, 2026

5 Stacks of pennies and other coins in ascending order from left to right.
Behavioural economics Business economics Competitive markets

Credit Rationing and Information Asymmetry: The Economics Behind Online Micro-Loans

Published on March 02, 2026

MacBook with wireframe designs on the screen.
Behavioural economics Business economics Competitive markets

Incomplete Contracts and Complex Requirements: Contract Theory and the Persistence of Bespoke Website Design Services

Published on February 20, 2026

3D Rendered image of a computer with emblems floating around saying PHP, HTML, JS & CSS
Behavioural economics Business economics Competitive markets

Comparative Advantage and Specialization in Execution: Ricardo’s Law Applied to SaaS Development

Published on February 03, 2026

Cell phone with black background and white text.
Behavioural economics Business economics Competitive markets

Bounded Rationality and Behavioral Frictions: Why Simple Digital Tools Outcompete “Built-In” Features

Published on January 30, 2026

A blonde and a brunette with a laptop and a phone open, showing the words "University".
Business economics Competitive markets Factors of production

Adaptive Learning as Bayesian Updating: Decision Theory in Modern Test Prep

Published on September 18, 2025

Overhead view of a desk with an open laptop, a plant, a notepad being handwritten on, a marketing and pricing book, and headphones.
Business economics

Price Elasticity of Demand in Startup Formation Services

Published on July 23, 2025

Two people inside of an office at a desk looking at a laptop and a larger desktop monitor
Business economics Innovation & Technology

Transaction Cost Economics and Financial Consolidation Software: Why Firms Invest in Digital Coordination

Published on July 16, 2025

Calculator, coins, cash, and pen representing budgeting, savings, and financial planning
Crypto Business economics

Financial Intermediation and Disintermediation: What Coase's Theory of the Firm Tells Us About Crypto Lending

Published on July 13, 2025

Wooden letter tiles spelling bond on reflective surface with greenery background
Business economics

Barriers to Entry: What Insurance Broker Bonds Reveal About the Economics of Occupational Licensing

Published on July 10, 2025

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Older Posts
Although increasingly popular, AI still makes serious mistakes...which could cost companies big bucks in damages.

The Economics of AI Hallucinations and Error Costs

To save money on labor, many companies want to use AI to automate basic office functions, from customer service to research. However, AI is prone to making mistakes that are confidently presented as accurate facts. What are the economic implications of unchecked AI use by companies?...
5 min read

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