The Impact of Big Data on Firm Performance: An Empirical Investigation
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<jats:p> We examine the impact of “big data” on firm performance in the context of forecast accuracy using proprietary retail sales data obtained from Amazon. We measure the accuracy of forecasts in two relevant dimensions: the number of products (N), and the number of time periods for which a product is available for sale (T). Theory suggests diminishing returns to larger N and T, with relative forecast errors diminishing at rate 1/sqrt(N)+1/sqrt(T). Empirical results indicate gains in forecast improvement in the T dimension but essentially flat N effects. </jats:p>
Date issued
2019-05-01Department
Massachusetts Institute of Technology. Department of EconomicsPublisher
American Economic Association
Citation
Bajari, Patrick, Chernozhukov, Victor, Hortaçsu, Ali and Suzuki, Junichi. 2019. "The Impact of Big Data on Firm Performance: An Empirical Investigation." 109.
Version: Final published version
ISSN
2574-0768
2574-0776