Big Data and Firm Dynamics

Maryam Farboodi, Roxana Mihet, Thomas Philippon and Laura Veldkamp

AEA Papers and Proceedings, 2019, vol. 109, 38-42

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.

JEL-codes: C55 D25 G31 L25 (search for similar items in EconPapers)
Date: 2019
Note: DOI: 10.1257/pandp.20191001
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Citations: View citations in EconPapers (44)

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Working Paper: Big Data and Firm Dynamics (2019)
Working Paper: Big Data and Firm Dynamics (2019)
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