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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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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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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, 2014. "Culturally Clustered or in the Cloud? Location of Internet Start-ups in Berlin," SERC Discussion Papers 0157, Spatial Economics Research Centre, LSE.
  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, 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 [rev.], ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

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