Big Data and Firm Dynamics

Maryam Farboodi, Roxana Mihet, Thomas Philippon () and Laura Veldkamp

No 25515, NBER Working Papers from National Bureau of Economic Research, Inc

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: D21 E01 L1 (search for similar items in EconPapers)
Date: 2019-01
New Economics Papers: this item is included in nep-bec, nep-big, nep-cfn, nep-ind, nep-mac, nep-pay and nep-tid
Note: CF EFG IO PR
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Citations: View citations in EconPapers (38)

Published as Maryam Farboodi & Roxana Mihet & Thomas Philippon & Laura Veldkamp, 2019. "Big Data and Firm Dynamics," AEA Papers and Proceedings, vol 109, pages 38-42.

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