The Strength of Direct Ties: Evidence from the Electronic Game Industry
25 Pages Posted: 19 Aug 2010 Last revised: 17 Apr 2012
Date Written: July 27, 2011
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.
Keywords: Social Network Analysis, Game Industry, Knowledge Spillovers
JEL Classification: L14, L86, D83
Suggested Citation: Suggested Citation