Can the Nexus of Scaling Laws Coupled with Constant or Variable Elasticity of Substitution Predict AI and Other Technology Adoption?

This paper presents the AI Enabled Individual Entrepreneurship Theory (AIET), a theoretical framework explaining how artificial intelligence technologies transform individual entrepreneurial capability. The theory identifies two foundational premises: knowledge democratization and resource requirements evolution. Through three core mechanisms skill augmentation, capital structure transformation, and risk profile modification AIET explains how individuals can now undertake ent...

When the full stock of a new product is quickly sold in a few days or weeks, one has the impression that new technologies develop and conquer the market in a very easy way. This may be true for some new technologies, for example the cell phone, but not for others, like the blue-ray. Novelty, usefulness, advertising, price, and fashion are the driving forces behind the adoption of a new product. But, what are the key factors that lead to adopt a new technology? In this paper w...

There are clear benefits associated with a particular consumer choice for many current markets. For example, as we consider here, some products might carry environmental or `green' benefits. Some consumers might value these benefits while others do not. However, as evidenced by myriad failed attempts of environmental products to maintain even a niche market, such benefits do not necessarily outweigh the extra purchasing cost. The question we pose is, how can such an initially...

This study proposes a new model based on a classic S-curve that describes deployment and stabilization at maximum capacity. In addition, the model extends to the post-growth plateau, where technological capacity is renewed according to the distribution of equipment lifespans. We obtain two qualitatively different results. In the case of "fast" deployment, characterized by a short deployment time in relation to the average equipment lifetime, production is subject to significa...

Do improvements in Artificial Intelligence (AI) benefit workers? We study how AI capabilities influence labor income in a competitive economy where production requires multidimensional knowledge, and firms organize production by matching humans and AI-powered machines in hierarchies designed to use knowledge efficiently. We show that advancements in AI in dimensions where machines underperform humans decrease total labor income, while advancements in dimensions where machines...

Denizens of Silicon Valley have called Moore's Law "the most important graph in human history," and economists have found that Moore's Law-powered I.T. revolution has been one of the most important sources of national productivity growth. But data substantiating these claims tend to either be abstracted - for example by examining spending on I.T., rather than I.T. itself - or anecdotal. In this paper, we assemble direct quantitative evidence of the impact that computing power...

Functional technical performance usually follows an exponential dependence on time but the rate of change (the exponent) varies greatly among technological domains. This paper presents a simple model that provides an explanatory foundation for these phenomena based upon the inventive design process. The model assumes that invention - novel and useful design- arises through probabilistic analogical transfers that combine existing knowledge by combining existing individual op...

This paper examines the profound challenges that transformative advances in AI towards Artificial General Intelligence (AGI) will pose for economists and economic policymakers. I examine how the Age of AI will revolutionize the basic structure of our economies by diminishing the role of labor, leading to unprecedented productivity gains but raising concerns about job disruption, income distribution, and the value of education and human capital. I explore what roles may remain...

This paper models the temporal adoption dynamics of an abstracted Internet technology or service, where the instantaneous net value of the service perceived by each (current or potential) user / customer incorporates three key features: i) user service affinity heterogeneity, ii) a network externality, and iii) a subscription cost. Internet technologies and services with network externalities face a "chicken and egg" adoption problem in that the service requires an establishe...

Due to the unavailability of prototypes, the early adopters of novel products actively seek information from multiple sources (e.g., media and social networks) to minimize the potential risk. The existing behavior models not only fail to capture the information propagation within the individual's social network, but also they do not incorporate the impact of such word-of-mouth (WOM) dissemination on the consumer's risk preferences. Moreover, even cutting-edge forecasting mode...