Big Data and Firm Dynamics

Laura Veldkamp, Maryam Farboodi and Roxana Mihet

No 13489, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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.

Keywords: Big data; Firm size (search for similar items in EconPapers)
Date: 2019-01
New Economics Papers: this item is included in nep-bec, nep-big, nep-cfn, nep-ent, nep-ind, nep-mac, nep-pay, nep-sbm and nep-tid
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Citations: View citations in EconPapers (44)

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