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

Claussen, Jörg ; Falck, Oliver and Grohsjean, Thorsten (18. August 2010): The Strength of Direct Ties: Evidence from the Electronic Game Industry. Discussion Papers in Business Administration 2010-8

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.

• Item Type: Paper
• Form of publication: Preprint
• Keywords: network analysis, game industry, knowledge spillovers
• Faculties: Munich School of Management; Munich School of Management > Discussion Papers; Munich School of Management > Discussion Papers > Communication Economics
• Subjects: 300 Social sciences > 300 Social sciences, sociology and anthropology; 300 Social sciences > 330 Economics
• JEL Classification: L14, L86, D83
• Language: English

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