2025/05/20 by Microsoft Copilot, Copilot, Microsoft, Stephen E. Spear +1
Computer Science · Economics, Econometrics and Finance · #Blockchain Technology Applications and Security #Complex Systems and Time Series Analysis #FOS: Economics and business #Financial Markets and Investment Strategies #Theoretical Economics (econ.TH)
paper · pdf · doi:10.48550/arxiv.2505.14612
openalex publication_date 2025/05/20 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
This paper extends (Spear 2003) by replacing human agents with artificial intelligence (AI) entities that derive utility solely from electricity consumption. These AI agents must prepay for electricity using cryptocurrency and the verification of these transactions requires a fixed amount of electricity. As a result the agents must strategically allocate electricity resources between consumption and payment verification. This paper analyzes the equilibrium outcomes of such a system and discusses the implications of AI-driven energy markets.