The Strength of Direct Ties: Evidence from the Electronic Game Industry
AbstractWe 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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Bibliographic InfoPaper provided by University of Munich, Munich School of Management in its series Discussion Papers in Business Administration with number 11745.
Date of creation: 18 Aug 2010
Date of revision:
network analysis; game industry; knowledge spillovers;
Other versions of this item:
- Claussen, Jörg & Falck, Oliver & Grohsjean, Thorsten, 2012. "The strength of direct ties: Evidence from the electronic game industry," International Journal of Industrial Organization, Elsevier, vol. 30(2), pages 223-230.
- Claussen, Jörg & Falck, Oliver & Grohsjean, Thorsten, 2010. "The Strength of Direct Ties: Evidence from the Electronic Game Industry," Discussion Papers in Business Administration 12298, University of Munich, Munich School of Management.
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
- L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-08-28 (All new papers)
- NEP-COM-2010-08-28 (Industrial Competition)
- NEP-IND-2010-08-28 (Industrial Organization)
- NEP-SOC-2010-08-28 (Social Norms & Social Capital)
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