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econ.TH2026
The Last Costly Signal: How Generative AI Collapses Competence Signaling and Why Liability Sustains Markets for Expert Services
Andreas Bauer
Generative artificial intelligence has reduced the cost of producing convincing artifacts of expertise-reports, analyses, proposals-to nearly zero. Signaling theory predicts that s…
econ.TH2026
The Fallback as Signal: Preserved Human Skill, Liability, and Competence Signaling in Credence-Good Markets under Improving AI
Andreas Bauer
Firms that deploy improving but imperfect AI must decide how much to keep human workers engaged. Engagement lowers current output yet builds the fallback skill the firm needs when…
econ.TH2026
The Institutional Window: Occupation- and Jurisdiction-Specific Calibration of Liability Signaling for Preserved Human Fallback Capability
Andreas Bauer
Problem definition. When generative AI produces expert artifacts clients cannot distinguish from a competent provider's, the classical cost-based quality signal collapses and only…