AI and Regulation: Finding the Sweet Spot for Consumer Welfare | with Keith Chan
Game Changer - the game theory podcast
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The Effect of Stranger Regulation on Consumer Welfare
The regulator can decide whether to turn a blind eye towards the behavior of the AI technology or whether to put on strict regulation. We found out that whether a stranger regulation should be chosen is dependent on a key parameter and that measures the competitiveness of the domestic AI firm. The reason is that if the domestic industry is superior in its technological capability or if it's inferior, a very inferior, then the regulators should maximize the regulation stream. So this explains why when the domestic capability in terms of AI technology is very high or very low, the government will have no incentive to step in and intervene.
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