DictionaryEvaluation
Cobb-Douglas Model
An economics formula used to estimate how much answer quality you get for the tokens you pay for.
Definition
An economic production function adapted for AI cost analysis. Models the relationship between token inputs (quantity and quality) and output quality, helping find the optimal trade-off between cost and performance.
Example
With an input exponent of 0.3, doubling input tokens raises modeled quality by about 23%, not 100%.