Dr. Lehr is a researcher and economist at the International Monetary Fund specializing in economic growth, innovation, entrepreneurship, and technology adoption. His research combines quantitative economic modeling with rigorous empirical methods to illuminate the mechanisms driving innovation, entrepreneurship, and technology choices on a macro scale.
Abstract
Leading AI firms claim to prioritize social welfare. How should firms with a social mandate price and deploy AI? We derive pricing formulas that depart from profit maximization by incorporating incentives to improve welfare and reduce labor disruptions. Using US data, we evaluate several scenarios. A welfarist firm that values both profit and welfare should price closer to marginal cost, as efficiency gains outweigh distributional concerns. A conservative firm focused on labor-market stability should price above the profit-maximizing level in the short run, especially when its AI may displace low-income workers. Overall, socially minded firms face a trade-off between expanding access to AI and the resulting loss in profits and labor market risks.
If you would like to give a presentation in a future webinar, contact our Senior Economist Dr. Wen Chen (wen.chen@luohanacademy.com). For other inquiries, please contact: events@luohanacademy.com.
