A reputational equilibrium in an AI agent market induces verification effort that rises with the share of users who highly value accuracy, leading to higher prices in hallucination-sensitive sectors such as law and medicine.
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Agentic AI and Hallucinations
A reputational equilibrium in an AI agent market induces verification effort that rises with the share of users who highly value accuracy, leading to higher prices in hallucination-sensitive sectors such as law and medicine.