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The strength of direct ties: Evidence from the electronic game industry

Author

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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 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.

Suggested Citation

  • Claussen, Jörg & Falck, Oliver & Grohsjean, Thorsten, 2012. "The strength of direct ties: Evidence from the electronic game industry," Munich Reprints in Economics 20067, University of Munich, Department of Economics.
  • Handle: RePEc:lmu:muenar:20067
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    References listed on IDEAS

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    Cited by:

    1. Kristoffer Moeller, 2013. "Culturally clustered or in the cloud? Location of internet start-ups in Berlin," ERSA conference papers ersa13p455, European Regional Science Association.
    2. 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.
    3. 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.
    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 [rev.], ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    5. Kummer, Michael, 2014. "Spillovers in networks of user generated content: Pseudo-experimental evidence on Wikipedia," ZEW Discussion Papers 14-132, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    6. Cabral, Luís, 2014. "Aftermarket power and foremarket competition," International Journal of Industrial Organization, Elsevier, vol. 35(C), pages 60-69.
    7. Thomes, Tim Paul, 2015. "In-house publishing and competition in the video game industry," Information Economics and Policy, Elsevier, vol. 32(C), pages 46-57.
    8. Claussen, Jörg & Essling, Christian & Kretschmer, Tobias, 2015. "When less can be more – Setting technology levels in complementary goods markets," Research Policy, Elsevier, vol. 44(2), pages 328-339.
    9. Storz, Cornelia & Riboldazzi, Federico & John, Moritz, 2015. "Mobility and innovation: A cross-country comparison in the video games industry," Research Policy, Elsevier, vol. 44(1), pages 121-137.
    10. Kummer, Michael E. & Saam, Marianne & Halatchliyski, Iassen & Giorgidze, George, 2016. "Centrality and content creation in networks - The case of economic topics on German wikipedia," Information Economics and Policy, Elsevier, vol. 36(C), pages 36-52.
    11. Gandal, Neil & Stettner, Uriel, 2016. "Network dynamics and knowledge transfer in virtual organisations," International Journal of Industrial Organization, Elsevier, vol. 48(C), pages 270-290.

    More about this item

    JEL classification:

    • 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; Information and Knowledge; Communication; Belief; Unawareness

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