2 chapters across the catalog
AI labs are citing Jevons Paradox—an 19th-century economic theory regarding steam engine efficiency—to argue that falling token prices will stimulate enough new demand to increase overall consumption. This theory is being used to reassure investors about margin pressure as cheaper open-source alternatives enter the market. However, for companies like Anthropic and OpenAI to benefit, token volume must grow faster than the rate of price decline.
Cliff Stoll's Failed Prediction About E-Commerce
Cliff Stoll analyzes his famous 1995 prediction that e-commerce would fail, admitting he was wrong because he overvalued the "richness" of the physical shopping experience. He acknowledges that economic efficiency is a powerful engine and that most people are happy to sacrifice personal interaction for the convenience of home delivery. Stoll reflects on how Jeff Bezos and Amazon proved that the desire for acquisition outweighs the desire for community-based retail.
