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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 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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Paper provided by University of Munich, Department of Economics in its series Munich Reprints in Economics with number 20067.

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Date of creation: 2012
Date of revision:
Publication status: Published in International Journal of Industrial Organization 2 30(2012): pp. 223-230
Handle: RePEc:lmu:muenar:20067
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