Big Data and Firm Dynamics
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<jats:p> 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. </jats:p>
Date issued
2019Department
Sloan School of ManagementJournal
American Economic Association Papers and Proceedings
Publisher
American Economic Association