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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 should be of special relevance in this knowledge-based industry. We calculate measures for a developer’s connectedness to other developers at multiple points in time. In a regression with developer, developing firm, publishing firm, and time fixed effects, we find that the number of a developer’s direct ties, i.e., common past experience, has a strong effect on both a game’s revenues and critics’ scores. The intensity of indirect ties makes no additional contribution to the game’s success.

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File URL: http://epub.ub.uni-muenchen.de/11745/1/ClaussenFalckGrohsjean-The_strength_of_direct_ties-evidence_from_the_electronic_game_industry.pdf
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Bibliographic Info

Paper provided by University of Munich, Munich School of Management in its series Discussion Papers in Business Administration with number 11745.

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Date of creation: 18 Aug 2010
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Handle: RePEc:lmu:msmdpa:11745

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Keywords: network analysis; game industry; knowledge spillovers;

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  1. Sanjeev Goyal & Marco van der Leij & José Luis Moraga Gonzales, 2004. "Economics: An Emerging Small World?," CESifo Working Paper Series 1287, CESifo Group Munich.
  2. Stremersch, S. & Tellis, G.J. & Franses, Ph.H.B.F. & Binken, J.L.G., 2007. "Indirect Network Effects in New Product Growth," Research Paper ERS-2007-019-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
  3. Matthew T. Clements & Hiroshi Ohashi, 2004. "Indirect Network Effects and the Product Cycle: Video Games in the U.S., 1994-2002," Working Papers 04-01, NET Institute, revised Oct 2004.
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Cited by:
  1. 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.
  2. 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.

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