This paper examines how the introduction of artificial intelligence (AI), particularly generative and large language models capable of interpolating precisely between known data points, reshapes scientists' incentives for pursuing novel versus incremental research. Extending the theoretical...

This paper analyzes the design of tests to distinguish human from artificial intelligence through the lens of information design. We identify a fundamental asymmetry: while AI systems can strategically underperform to mimic human limitations, they cannot overperform beyond their capabilities....

Building on recent advances in the literature on knowledge creation and innovation (notably Carnehl and Schneider (2025), we propose a novel general equilibrium model that explicitly incorporates artificial intelligence (AI) as a decision-enhancing technology capable of interpolating between...

This paper examines a new moral hazard in delegated decision-making: authors can embed hidden instructions--known as prompt injections--to bias AI referees in academic peer review, thereby hijacking machine recommendations. Because AI reviews are relatively inexpensive compared to manual...

This paper examines the role of artificial intelligence as a strategist in organizational decision-making by extending van den Steen's formal theory of strategy. A mathematical model is developed comparing AI and human strategists across different decision contexts, focusing on how each type...

The adoption of artificial intelligence (AI) prediction of demand by a monopolist firm is examined. It is shown that, in the absence of AI prediction, firms face complex trade-offs in setting price and quantity ahead of demand that impact on the returns of AI adoption. Different industrial...

Economists have often viewed the adoption of artificial intelligence (AI) as a standard process innovation where we expect that efficiency will drive adoption in competitive markets. This paper models AI based on recent advances in machine learning that allow firms to engage in better...