To Make, or to Buy: The Economics of Decision Models
Summary
This blog post explores the economics of decision models for AI systems, focusing on when to make in-house decisions versus outsourcing to models like Jev. It explains three output types (choice, score, and noul) and derives Chow's rule to balance the cost of answering versus deferring to the next level. The piece also discusses latency, audits, and industry implications for AI vendors and decision interfaces.