The Impact of Big Data on Firm Performance: An Empirical Investigation
<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...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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American Economic Association
2021
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| Online Access: | https://hdl.handle.net/1721.1/138031 |
| _version_ | 1826212536092983296 |
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| author | Bajari, Patrick Chernozhukov, Victor Hortaçsu, Ali Suzuki, Junichi |
| author_facet | Bajari, Patrick Chernozhukov, Victor Hortaçsu, Ali Suzuki, Junichi |
| author_sort | Bajari, Patrick |
| collection | MIT |
| description | <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> |
| first_indexed | 2024-09-23T15:24:25Z |
| format | Article |
| id | mit-1721.1/138031 |
| institution | Massachusetts Institute of Technology |
| language | English |
| last_indexed | 2024-09-23T15:24:25Z |
| publishDate | 2021 |
| publisher | American Economic Association |
| record_format | dspace |
| spelling | mit-1721.1/1380312021-11-10T03:07:20Z The Impact of Big Data on Firm Performance: An Empirical Investigation Bajari, Patrick Chernozhukov, Victor Hortaçsu, Ali Suzuki, Junichi <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> 2021-11-09T18:54:28Z 2021-11-09T18:54:28Z 2019-05-01 2019-10-22T16:01:09Z Article http://purl.org/eprint/type/JournalArticle 2574-0768 2574-0776 https://hdl.handle.net/1721.1/138031 Bajari, Patrick, Chernozhukov, Victor, Hortaçsu, Ali and Suzuki, Junichi. 2019. "The Impact of Big Data on Firm Performance: An Empirical Investigation." 109. en 10.1257/pandp.20191000 Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use. application/pdf American Economic Association American Economic Association |
| spellingShingle | Bajari, Patrick Chernozhukov, Victor Hortaçsu, Ali Suzuki, Junichi The Impact of Big Data on Firm Performance: An Empirical Investigation |
| title | The Impact of Big Data on Firm Performance: An Empirical Investigation |
| title_full | The Impact of Big Data on Firm Performance: An Empirical Investigation |
| title_fullStr | The Impact of Big Data on Firm Performance: An Empirical Investigation |
| title_full_unstemmed | The Impact of Big Data on Firm Performance: An Empirical Investigation |
| title_short | The Impact of Big Data on Firm Performance: An Empirical Investigation |
| title_sort | impact of big data on firm performance an empirical investigation |
| url | https://hdl.handle.net/1721.1/138031 |
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