New paper models how humans and AIs sort into firms that maximize total surplus
soumitrashukla9 · x · 2026-11-07
RT of @andrewjkoh: in equilibrium, humans and AIs sort into firms that produce downstream in a product market. The firm composition that emerges maximizes total surplus (otherwise firms get replaced), and each human 'type's wage depends on their marginal value. Figure shows the model structure: a scarce human pool, AI mass duplicable at rate r, and the distribution of firm scales.
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