Gurkan, Huseyin; Véricourt, Francis de - 2021 - Revised version
captures the main dynamics among ML, data acquisition, pricing, and contracting. We find that the firm's decisions crucially … effect. This effect designates a virtuous cycle by which, as an ML product is adopted and new user data are fed back to the … the algorithm is contracted out. Indeed, the additional data that the AI Flywheel effect generates may change the provider …