Both Baumol effect and Jevons paradox may apply to the AI supercycle, as services with AI productivity gains get cheaper, while those without AI become costlier (Alex Danco/a16z)

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Alex Danco / a16z:Both Baumol effect and Jevons paradox may apply to the AI supercycle, as services with AI productivity gains get cheaper, while those without AI become costlier  —  The Baumol Effect and Jevons paradox are related  —  If you live in the United States today, and you accidentally knock a hole in your wall …