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We study how organizational boundaries affect pricing decisions using comprehensive data from a large U.S. airline. We document that the firm's advanced pricing algorithm, utilizing inputs from different organizational teams, is subject to multiple biases. To quantify the impacts of these...
Persistent link: https://www.econbiz.de/10012696417
We propose an approach to measuring the state of the economy via textual analysis of business news. From the full text content of 800,000 Wall Street Journal articles for 1984{2017, we estimate a topic model that summarizes business news as easily interpretable topical themes and quantifies the...
Persistent link: https://www.econbiz.de/10012479172
The last 40 years have seen huge innovations in computing technology and data availability. Data derived from millions of administrative records or by using (as we do) new methods of data generation such as text mining are now common. New data often requires new methods, which in turn can...
Persistent link: https://www.econbiz.de/10012479239
with dictionary-based methods), our supervised learning framework constructs a sentiment score that is specifically adapted …
Persistent link: https://www.econbiz.de/10012480131
traditional linking methods. Second, we use the links to construct a training data set for use in supervised machine learning …
Persistent link: https://www.econbiz.de/10012480171
payment performance and over 5,000 demographic variables, we compare machine learning and econometric models to predict the … to FICO score, and that using machine learning techniques further enhances model performance. Relative to FICO, the … machine learning model increases the number of low-to-moderate income consumers approved for community solar by 1.1% to 4 …
Persistent link: https://www.econbiz.de/10012480230
This paper studies the estimation of asset pricing model regressions with conditional alphas and betas, focusing on the joint effects of data snooping and spurious regression. We find that the regressions are reasonably well specified for conditional betas, even in settings where simple...
Persistent link: https://www.econbiz.de/10012466003
Economists are quick to assume opportunistic behavior in almost every walk of life other than our own. Our empirical methods are based on assumptions of human behavior that would not pass muster in any of our models. The solution to this problem is not to expect a mass renunciation of data...
Persistent link: https://www.econbiz.de/10012466072
Even though stock returns are not highly autocorrelated, there is a spurious regression bias in predictive regressions for stock returns related to the classic studies of Yule (1926) and Granger and Newbold (1974). Data mining for predictor variables interacts with spurious regression bias. The...
Persistent link: https://www.econbiz.de/10012469566
Big data is revolutionizing the finance industry and has the potential to significantly shape future research in finance. This special issue contains articles following the 2019 NBER/ RFS conference on big data. In this Introduction to the special issue, we define the "Big Data" phenomenon as a...
Persistent link: https://www.econbiz.de/10012496169