On Sun, Dec 28, 2025 at 12:58 PM, Tom Walker wrote:

> 
> Time to diagram M-C-M' with all the transaction costs and social cost
> shifting indicated in the circuit.

I was thinking that a huge part of the purpose of large languish model is for 
reducing or shifting transaction and social costs -- more so than playing a 
direct role in production. A currently operative example of this would be 
dynamic pricing. The search term "autonomous algorithmic collusion" returns 400 
articles on Google Scholar, 90% of them since 2020 and 3/4 of them citing this 
article by Timo Klein in the RAND Journal of Economics: " Autonomous 
algorithmic collusion: Q-learning under sequential pricing ( 
https://onlinelibrary.wiley.com/doi/pdf/10.1111/1756-2171.12383 )."

> 
> More and more, prices are set by algorithms rather than humans. One
> prominent concern is that intelligent, self-learning pricing algorithms
> may work out by themselves how to ensure high prices (Mehra, 2016; Ezrachi
> and Stucke, 2016, 2017). Such an outcome would be the same as in a price
> cartel, but without any overt act of communication or agreement required
> to establish a competition law infringement (Harrington, 2018). The debate
> has received extensive press coverage and increasing interest from
> authorities.1 Beyond hypothetical concerns, recent empirical research
> already suggests that the adoption of self-learning pricing algorithms can
> indeed have negative effects on competition (Assad et al., 2020). However,
> exactly how algorithms may lead to autonomous collusion is an open
> research question.
> 

Only around 8% of the articles contain the word "wages" and none contain "hours 
of work" (including several variations).


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