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Collaborative Research: The Economics of Algorithms, Computing Capacity, and Data — NSF Award to Massachusetts Institute of Techno

Algorithms, cloud computing, and data define the infrastructure of the modern digital economy. The prices users pay for computation, software services, and information must reflect the true value to society of these goods. This is necessary in a market economy both because such prices help foster innovation and because

Award titleCollaborative Research: The Economics of Algorithms, Computing Capacity, and Data
Award ID2519401
AwardeeMassachusetts Institute of Technology
CityCAMBRIDGE
StateMA
Amount obligated$226,000
Principal investigatorAlessandro Bonatti
ProgramEconomics
Start date08/01/2025
AbstractAlgorithms, cloud computing, and data define the infrastructure of the modern digital economy. The prices users pay for computation, software services, and information must reflect the true value to society of these goods. This is necessary in a market economy both because such prices help foster innovation and because they lead to efficient use of resources. This research analyzes three linked questions: (i) how to price the tokens that govern access to large language models; (ii) how to design
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