Big Data and Firm Dynamics
- (pp. 38-42)
AbstractWe study a model where firms accumulate data as a valuable intangible asset. Data accumulation affects firms' dynamics. It increases the skewness of the firm size distribution as large firms generate more data and invest more in active experimentation. On the other hand, small data-savvy firms can overtake more traditional incumbents, provided they can finance their initial money-losing growth. Our model can be used to estimate the market and social value of data.
CitationFarboodi, Maryam, Roxana Mihet, Thomas Philippon, and Laura Veldkamp. 2019. "Big Data and Firm Dynamics." AEA Papers and Proceedings, 109: 38-42. DOI: 10.1257/pandp.20191001
- C55 Large Data Sets: Modeling and Analysis
- D25 Intertemporal Firm Choice: Investment, Capacity, and Financing
- G31 Capital Budgeting; Fixed Investment and Inventory Studies; Capacity
- L25 Firm Performance: Size, Diversification, and Scope