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The strength of direct ties: Evidence from the electronic game industry

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  • Claussen, Jörg
  • Falck, Oliver
  • Grohsjean, Thorsten

Abstract

We analyze the economic effects of a developer's connectedness in the electronic game industry. Knowledge spillovers between developers are likely to be of special relevance in this knowledge-intensive and regionally concentrated industry. We calculate social network measures for a developer's connectedness to other developers at multiple points in time. In a regression in which we exploit within-career variation in social network measures, we find that the number of direct ties a developer has to other developers has a strong effect on both a game's revenues and critics' scores. The quality of indirect ties makes no additional contribution to the game's success.

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Bibliographic Info

Article provided by Elsevier in its journal International Journal of Industrial Organization.

Volume (Year): 30 (2012)
Issue (Month): 2 ()
Pages: 223-230

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Handle: RePEc:eee:indorg:v:30:y:2012:i:2:p:223-230

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Web page: http://www.elsevier.com/locate/inca/505551

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Keywords: Social network analysis; Electronic game industry; Knowledge spillovers;

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Cited by:
  1. Claussen, Jörg & Grohsjean, Thorsten & Luger, Johannes & Probst, Gilbert, 2014. "Talent management and career development: What it takes to get promoted," Journal of World Business, Elsevier, vol. 49(2), pages 236-244.
  2. Kristoffer Moeller, 2013. "Culturally clustered or in the cloud? Location of internet start-ups in Berlin," ERSA conference papers ersa13p455, European Regional Science Association.
  3. Kummer, Michael E., 2013. "Spillovers in networks of user generated content: Evidence from 23 natural experiments on Wikipedia," ZEW Discussion Papers 13-098, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  4. Kummer, Michael E. & Saam, Marianne & Halatchliyski, Iassen & Giorgidze, George, 2012. "Centrality and content creation in networks: The case of German Wikipedia," ZEW Discussion Papers 12-053 [rev.], ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  5. Kummer, Michael E. & Saam, Marianne & Halatchliyski, Iassen & Giorgidze, George, 2012. "Centrality and content creation in networks: The case of German Wikipedia," ZEW Discussion Papers 12-053, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

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