The Price of Intelligence

In Episode 5 of the Control in AI Series, we explain how standard antitrust tools (market definition, SSNIP tests, and price indices) break down in AI markets. You’ll learn about the tariff system, economies of scale and scope, stacked demand, emergent switching costs, and why competition in AI is driven far more by quality and capability than price.This episode demonstrates how the architecture of AI markets presents distinctive obstacles for regulators and why traditional playbooks are ineffective.Read the full article and graphic analysis: https://blog.econworks.com/p/control-in-ai-episode-5-the-price?r=562wriExplore more visual economics content: https://econworks.comYouTube: https://www.youtube.com/@EconWorks-d3eSubstack: https://blog.econworks.com This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit blog.econworks.com/subscribe