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Sponsored AI AM CLAUDE, A Beginner's Guide: Learn the basics of working with AI AI AM CLAUDE, A Beginner's Guide: Learn the basics of working with AI

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Sylvain Leduc

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Open access Aug 2026

Will AI Intensify or Weaken Market Competition?

We study how AI affects market competition based on a general equilibrium framework with heterogeneous firms facing idiosyncratic productivity and variable markups. Firms choose the AI technology subject to fixed costs, where AI production requires data and energy inputs. Our model predicts a non-monotonic relation of...

Hamid Firooz, Sylvain Leduc, Zheng Liu · 0 citations

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