The Strength of Direct Ties: Evidence from the Electronic Game Industry
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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- Matthew T. Clements & Hiroshi Ohashi, 2004.
"Indirect Network Effects and the Product Cycle: Video Games in the U.S., 1994-2002,"
CIRJE-F-261, CIRJE, Faculty of Economics, University of Tokyo.
- 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.
- Sanjeev Goyal & Marco van der Leij & José Luis Moraga-Gonzàlez, 2004.
"Economics: An Emerging Small World?,"
2004.84, Fondazione Eni Enrico Mattei.
- Stremersch, S. & Tellis, G.J. & Franses, Ph.H.B.F. & Binken, J.L.G., 2007. "Indirect Network Effects in New Product Growth," ERIM Report Series Research in Management 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 University Rotterdam.
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