Documenting six facts about the structure and dynamics of the LLM market, from Mert Demirer, Andrey Fradkin, Nadav Tadelis, and Sida Peng www.nber.org/papers/w34608
🚨Free data alert!! 🚨 Please share.
Large new dataset of Amazon product reviews, including full text and photos and product characteristics, with individual *reviews labeled as fake reviews*.
I believe this is the first publicly available data of this kind.
github.com/bretthollenb...
3. There is substantial multi-homing, with users of the same app employing a mix of models.
This is still very preliminary work, so comments are welcome!
2. New model releases differ in the degree to which they cause substitution from existing models or expand the market.
Through the use of three case studies of model releases (Sonnet 3.7, Gemini 2.0 Flash, Gemini 2.5 Pro), I document three stylized facts:
1. New models are adopted quickly, with increased demand stabilizing within a few weeks.
🚨 New working paper 🚨
Demand for LLMs: Descriptive Evidence on
Substitution, Market Expansion, and Multi-Homing
A key question for the business of AI is the extent to which LLMs are differentiated from each other. I use data from OpenRouter to take a first look.
andreyfradkin.com/assets/deman...
Congratulations to Frank Verboven (@frankverboven.bsky.social) for being appointed as AER coeditor, handling papers in empirical IO and related fields. His term starts on July 1. I’m delighted to have him on our team. @aeajournals.bsky.social #EconSky