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Soren Larson on X: "The Coase Conjecture in AI Inference Markets " / X

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To view keyboard shortcuts, press question mark View keyboard shortcuts Home Explore Notifications Chat Grok Premium Bookmarks Creator Studio Articles Profile More Post Kavish Garg @thatkavish Article See new posts Conversation Soren Larson @hypersoren The Coase Conjecture in AI Inference Markets 7 17 101 43K If frontier AI were a monopoly, would its business be durable with an open source alternative? This technology cycle has been particularly interested in economist Ronald Coase. He's been in the discourse for his near century-old writing on the Nature of the Firm, answering why firms exist and why they grow. His view: Firms exist to minimize transaction costs––firms grow larger whenever hiring is cheaper than transacting and vice versa. His later writing on monopolies and durability has gone without much attention––it's the subject of this article. Some investors––recently D1's Dan Sundheim––believe lab economics are settled. Jump in at 9:45 to hear the argument. Patrick OSha

If frontier AI were a monopoly, would its business be durable with an open source alternative? This technology cycle has been particularly interested in economist Ronald Coase. He's been in the discourse for his near century-old writing on the Nature of the Firm, answering why firms exist and why they grow. His view: Firms exist to minimize transaction costs––firms grow larger whenever hiring is cheaper than transacting and vice versa. His later writing on monopolies and durability has gone without much attention––it's the subject of this article. Some investors––recently D1's Dan…

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