J. Manuel Sánchez-Cartas

Hi, I'm Manuel, and I'm an economist working on platform competition and algorithmic pricing. I joined Twitter to comment on what is going on in these areas and keep up-to-date. You can expect short summaries and recommendations of key works. Views are my own.

@IgorLetina It could be just a collateral effect (I mean, the waste of tokens). They may increase temperature artificially just to be a bit creative so to avoid getting stuck.

@SanchezCartas Oh, I'm sure it's by design, but I don't think their objective is to waste tokens. They built Claude with a "move fast and break things" mindset. Codex, in my experience, has been much more restrained.

Something tells me Claude is not actually sorry.

@_ToFeWe Congrats! It's an instant classic. Very well done!

My single-authored paper "Algorithmic and Human Collusion" has been accepted for publication at the Economic Journal. More than happy about this outcome and the process of getting there. I won't summarize the paper yet again on here, but a small anecdote about the paper🧵

My latest paper on MDE is about this, a simple model in which acquisitions are contingent on payments shows the first effect, and a simple Cournot model illustrates the second. Hope you find it useful! researchgate.net/publication/39…

a) payments are conditional on the acquisition or b) no pre-merger decisions are considered. If either of these conditions fails, the “take it or leave it” assumption is an extreme case and (sometimes) a very strong assumption.

The “take it or leave it” assumption is common in M&A models, since the bargaining process only determines the allocation of the surplus among the parties and simplifies the model, right? Yes, but it is a double-edged sword, since it is only true if (...)

If true, this implies that LLM-enabled collusion can be traced back to the prompts, and the prompt can reveal the user's goals.

BREAKING NEWS The Royal Swedish Academy of Sciences has decided to award the 2025 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel to Joel Mokyr, Philippe Aghion and Peter Howitt “for having explained innovation-driven economic growth” with one half to Mokyr “for having identified the prerequisites for sustained growth through technological progress” and the other half jointly to Aghion and Howitt “for the theory of sustained growth through creative destruction.” #NobelPrize

Check it below! link.springer.com/article/10.100…

...nor has incentive to do so. However, we can expect a reduction of content and providers, but not everywhere. Competitive markets and those with barriers to entry are more resilient to Google AI summaries. Why? In a recent published article, we answered this and more [2/3]

Google users who encounter an AI summary are less likely to click on links to other websites than users who do not see one. But Google won't kill the content market...[1/3] pewresearch.org/short-reads/20…

Fisman (2001): We can show that Indonesia is corrupt, because the share price of Suharto-connected firms plummets when Suharto gets hospitalized. 1/

@_ToFeWe You'll be a great addition to any department! Best of luck!

📢 I am on the economic job market 🚀 My JMP "Algorithmic and Human Collusion" shows pricing algorithms can be more collusive than humans and explores their interaction. Link: papers.ssrn.com/sol3/papers.cf… Other research: tfwerner.com #EconTwitter #EconJM #JMP

Working paper version here: drive.google.com/file/d/1ufLjAG…

Moreover, we find that there is a relationship between the number of creators pre- and post-GenAI and the "summarization effect". We hope this and other results may help others estimate the effect of GenAI in digital markets.

Happy to share our latest work! GenAI may reduce content and increase its price when it summarizes content that can be found on the Web, such as Wikipedia or news articles. But not all markets will suffer the same fate...

@_ToFeWe Wow! Sounds awesome. Kudos to all of you! A fine addition to my to-read list haha!

Or listen to this notebookLM podcast: drive.google.com/file/d/1-ubGjC… Super impressive summary!

Excited to share our new paper! "Experimental Evidence That Conversational Artificial Intelligence Can Steer Consumer Behavior Without Detection" Co-authored with Ivan Soraperra, @EmilioC_, David C. Parkes, and @iyadrahwan. 👉 Read it here: arxiv.org/abs/2409.12143 1/X 🧵

When this is Figure 1 of your paper you know that you have a killer paper. "All fields, EXCEPT FOR ECONOMICS, exhibit a low and decreasing concentration, which suggests a trend toward decentralized knowledge production." conference.nber.org/conf_papers/f2…

Breaking News: Google acted illegally to maintain a monopoly in online search, a federal judge ruled on Monday, a decision that strikes at the power of big tech companies and that may fundamentally alter the way they do business. nyti.ms/4dcjQkZ