The authors analyze the expansion of Big Data and artificial intelligence technologies from the perspective of economic theory. The authors argue that these technologies can be viewed from three perspectives: (1) as an intangible asset; (2) as a search and matching technology; and (3) as a forecasting technology. These points of view shed light on how new technologies are likely to affect matching between firms and consumers, productivity growth, price discrimination, competition, inequality among firms, and inequality among workers.
We thank the Internet Association for awarding us the 2018 Internet Economy Research Grant which provided financial support for this project. We would also like to thank Long Chen, Stijn Claessens, Avi Goldfarb, Christopher Hooton, Laura McGorman, Laura Veldkamp, and participants at the NBER Doctoral Workshop on the Economics of Artificial Intelligence in Toronto for useful discussions and suggestions.
Mihet, R. and Philippon, T. (2019), "The Economics of Big Data and Artificial Intelligence", Choi, J.J. and Ozkan, B. (Ed.) Disruptive Innovation in Business and Finance in the Digital World (International Finance Review, Vol. 20), Emerald Publishing Limited, Bingley, pp. 29-43. https://doi.org/10.1108/S1569-376720190000020006
Emerald Publishing Limited
Copyright © 2019 Emerald Publishing Limited