Jevon's paradox arguments are sloppy: revenue can't win whichever way prices move
charles_irl · x · 2026-11-09
bernhardsson calls out sloppy Jevon's paradox reasoning in AI circles: when inference prices rise, people say "great for revenue"; when they fall, it's "Jevon's paradox, great for revenue." Either way, revenue wins.
His point: you should be honest about the sign of the partial derivative of revenue with respect to prices—pick a direction and defend it, instead of having it both ways.
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