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The AI Layoff Trap - Game Theory Says Everyone Loses
A UPenn-BU paper models AI-driven layoffs as a Prisoner's Dilemma: each firm wins by automating, but when everyone does it, collapsing demand makes every firm worse off. Their proposed fix is a Pigouvian tax on automated tasks.
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By Awesome AgentsA UPenn-BU paper models AI-driven layoffs as a Prisoner's Dilemma: each firm wins by automating, but when everyone does it, collapsing demand makes every firm worse off. Their proposed fix is a Pigouvian tax on automated tasks.