Konferenzbeitrag

Artificial Intelligence and its Effect on Competition and Factor Income Shares

We examine the impact of self-learning Artificial Intelligence (AI) on firm competition in a growth model with endogenous labor supply and heterogeneous agents. AI possesses the ability to improve autonomously through application, testing, and training. When firms incorporate AI into their production processes, they incur variable costs for acquiring the necessary software as well as fixed costs for installing AI infrastructure. The latter indeed drive productivity increases and economic growth but can also serve as an entry barrier for competing firms. Therefore, we examine how the rise of AI affects market concentration, firm competition, firm productivity and income inequality. We discuss potential policy interventions such as a profit tax or the modernization of competition and merger laws to prevent a significant increase in market concentration and income inequality within AIintensive industries and to foster economic growth.

Sprache
Englisch

Erschienen in
Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2023: Growth and the "sociale Frage"

Klassifikation
Wirtschaft
Firm Behavior: Theory
Industrial Policy; Sectoral Planning Methods
Production, Pricing, and Market Structure; Size Distribution of Firms
Oligopoly and Other Imperfect Markets
Technological Change: Choices and Consequences; Diffusion Processes
Thema
Markups
Artificial Intelligence
Imperfect Competition
Competition Policy
Factor Income Shares

Ereignis
Geistige Schöpfung
(wer)
von Maydell, Richard
Ereignis
Veröffentlichung
(wer)
ZBW - Leibniz Information Centre for Economics
(wo)
Kiel, Hamburg
(wann)
2024

Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Konferenzbeitrag

Beteiligte

  • von Maydell, Richard
  • ZBW - Leibniz Information Centre for Economics

Entstanden

  • 2024

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