Big Data and Firm Dynamics
Name
pandp.20191001.pdf
Description
Published version
Size
518.27 KB
Format
Unknown
Checksum (MD5)
8fde62c779e91a3e3778fd9e54d8135a
Author(s)
Farboodi, Maryam
Mihet, Roxana
Philippon, Thomas
Veldkamp, Laura
Date Issued
2019
Journal
American Economic Association Papers and Proceedings
Publisher
American Economic Association
Version
Final published version
Abstract
We 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.
MIT Department
Sloan School of Management
Terms of Use
Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.
Persistent DSpace Link
DOI of Published Version
https://doi.org/10.1257/PANDP.20191001
