In economics, the Jevons paradox, or Jevons effect, is said to occur when technological improvements that increase the efficiency of a resource's use lead to a rise, rather than a fall, in total consumption of that resource. Greater efficiency reduces the amount of the resource needed per application, lowering its effective cost; if demand is sufficiently price elastic, this induces demand, frequently resulting in a net increase of total resource consumption.
The Jevons Paradox of AI - Wesley's notes
Why AI can make us more productive but will never save us time
Unfortunately, You Need to Know What the Jevons Paradox is
Unfortunately, You Need to Know What the Jevons Paradox is
The Profit Paradox
"Greedflation" and the Profits Equation
The assumption behind the "greedflation" thesis is that companies are choosing to squeeze volumes because they care more about unit margins than total profits. There are other possibilities.
Unfixed Resources: Perceived Costs, Consumption, and the Accessible Account Effect
Abstract. Consumption depletes one's available resources, but consumers may be unaware of the total resources available for consumption and, therefore, be
Uneconomic growth
Uneconomic growth is economic growth that reflects or creates a decline in the quality of life. The concept is used in human development theory, welfare theory, and ecological economics. It is usually attributed to ecological economist Herman Daly, though other theorists may also be credited for the incipient idea, According to Daly, "uneconomic growth occurs when increases in production come at an expense in resources and well-being that is worth more than the items made." The cost, or decline in well-being, associated with extended economic growth is argued to arise as a result of "the social and environmental sacrifices made necessary by that growing encroachment on the eco-system."
The Fallacy of Endless Economic Growth
What economists around the world get wrong about the future.
Regenerative Economics - Principles
Our hope is that the Regenerative Economics materials act like a wildflower, taking root in even the smallest of cracks and spreading seeds to change the way economics is understood by young people around the world. The guiding principles: Facilitate change from the ground up: We recognise the
The Optimization Trap: Why Too Much Efficiency Makes Us Fragile with Olivier Hamant
Quotes
I have a theory, which has not let me down so far, that there is an inverse relationship between imagination and money. Because the more money and technology that is available to [create] a work, the less imagination there will be in it.
Quotes
I have a theory, which has not let me down so far, that there is an inverse relationship between imagination and money. Because the more money and technology that is available to [create] a work, the less imagination there will be in it.
Monetary incentives, what are they good for?
This paper is a critical reflection on the use of monetary incentives in economic experiments. The argument is that incentives have their effect through their influence on one or more of three fact...
Rational Inattention: A Review
We review the recent literature on rational inattention, identify the main theoretical mechanisms, and explain how it helps us understand a variety of phenomena across fields of economics. The theory of rational inattention assumes that agents cannot process all available information, but they can choose which exact pieces of information to attend to. Several important results in economics have been built around imperfect information. Nowadays, many more forms of information than ever before are available due to new technologies, and yet we are able to digest little of it. Which form of imperfect information we possess and act upon is thus largely determined by which information we choose to pay attention to. These choices are driven by current economic conditions and imply behavior that features numerous empirically supported departures from standard models. Combining these insights about human limitations with the optimizing approach of neoclassical economics yields a new, generally applicable model.
