The Business Engineer

The Business Engineer

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The Business Engineer
The Business Engineer
The Code Cost Paradox

The Code Cost Paradox

Gennaro Cuofano's avatar
Gennaro Cuofano
May 26, 2025
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The Business Engineer
The Business Engineer
The Code Cost Paradox
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We’re living through the whole redefinition of the software industry via an outcome-based AI economy.

Indeed, when most people consider the economics of software development, they assume a simple relationship: if coding becomes cheaper, software will become cheaper, too.

This intuitive logic follows the traditional supply-and-demand framework we apply to physical goods.

However, the software operates under fundamentally different economic principles, creating what we can call the Code Cost Paradox.

The paradox is that as the marginal cost of coding approaches zero, the economic value of software doesn't diminish; it explodes exponentially.

This isn't just a minor economic quirk; it's a paradigm shift reshaping entire industries and creating unprecedented wealth.

Based on this premise, let’s see how we got here.


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