Comment by ok123456
11 hours ago
No. I'm stating where the paper's assumptions are clearly violated.
AI companies are intentionally trying to monopolize the supply of inputs needed for R&D. This violates homogeneity of degree 1.
11 hours ago
No. I'm stating where the paper's assumptions are clearly violated.
AI companies are intentionally trying to monopolize the supply of inputs needed for R&D. This violates homogeneity of degree 1.
Isn't this true in a lot of situations? Basically anytime maximum production capacity of an input is limited, or scale-up time is very long, firms are large relative to the supply so they are not price takers.
PP's point has (mostly?) been addressed in
https://www.aeaweb.org/articles?id=10.1257/mac.20180386
Inputs that can be monopolized are manifestly _not_ the intangibles; price-taking is independent of their effect