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The Strength of Direct Ties: Evidence from the Electronic Game Industry

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

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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