Liability for AI providers is welfare-improving but harder in competitive markets, says Gans

joshgans · x · 2026-09-22

Joshua Gans argues that making AI providers liable for a share of cybersecurity losses mitigates their under-pricing incentives and is welfare-improving. Interestingly, he notes this is trickier for competitive AI providers than for monopolists who 'self-high-price.'

Related event: Economist Joshua Gans argues AI providers should bear liability for cyberattack losses(5 posts)→

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