TheBitCast

What Happens When Every Firm Gets Better at Maximizing Profit?

Podcast: EconWorks Podcast · EconWorks

Opublikowano: 2026-10-13

What if every business told an AI one simple thing: **maximize long-term profit without breaking the law**? A company today needs economists, salespeople, marketers, lawyers, finance departments, and managers. They have different information, different incentives, and often conflicting advice. AI could well embed a lot of those functions into a much more disciplined profit-maximizing system. The result raises an odd antitrust issue. An artificial intelligence can learn that aggressive price cuts tend to trigger competitive responses. It may discover that promotions, expansions of capacity, or efforts to lure away customers provoke retaliation. It may therefore...