regulation


Sailing with Artificial Intelligence: Recommendation systems and digital markets

In this complex digital age, people’s lives are greatly simplified by recommendation systems – AI algorithms that make it easier for online users to find the things they like in a vast ocean of options. These systems have profound impacts on individuals’ decisions and market outcomes. On one hand, they provide a higher match value than when individuals autonomously engage in a costly search for their preferred items. On the other hand, they lead to substantial market concentration and prompt sellers to raise their prices. Although our research generally indicates a positive net effect, the complex influence of these AI tools on economic outcomes requires careful examination and understanding.

Silicon Valley Bank: a modern-day crisis

Several months have now passed since the run on Silicon Valley Bank in March 2023. This column argues that now is a good point to reflect on the bank’s failure and the ensuing policy responses. Though this was a US banking experience, the lessons from the crash extend across borders, including Italy. In fact, some of the concerns over governments’ commitment to deposit insurance are perhaps even more of a concern for policy-makers in Europe.