I study the relationship between data and market power in a duopoly model of price discrimination with search frictions. One firm receives a signal about the valuation of any arriving consumer while its rival receives no information. A share of consumers, who I name directed searchers, have...

We build a theoretical model to study how the widespread availability of data to firms affects the transmission of monetary policy and aggregate uncertainty. The presence of data strengthens the investment channel of monetary policy and can amplify cyclical fluctuations. Because data helps firms...