Heads or Tails? Network Effects on Game Purchase Behavior in The Long Tail Market

Irfan Kanat, Raghu Santanam, Ajay Vinzé

Research output: Contribution to journalArticle

Abstract

This study aims to uncover role of network effects, namely the social influence and network externalities, on purchasing of digital goods. We are particularly interested in the differences in network effects in long tail versus the head of the market. We used a novel dataset from an online game distribution platform covering 1975 games and 8000 users in this study. The results reveal that network effects are more pronounced for the tail of the market in comparison to the head of the market. For the games that are in the head of the market the purchasing may be more significantly influenced by factors unobserved in this study (such as advertising budget) yet the games in the tail benefited greatly from any change to the network effects. The games that relied on user-to-user engagement did not fare well in the tail of the market.

Original languageEnglish (US)
JournalInformation Systems Frontiers
DOIs
StateAccepted/In press - Jan 1 2018

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Purchasing
Tail
Game
Marketing
Social Influence
Externalities
Social Networks
Covering
Market

Keywords

  • Digital economy
  • Network effects
  • Network externalities
  • Online games
  • Social influence

ASJC Scopus subject areas

  • Software
  • Theoretical Computer Science
  • Information Systems
  • Computer Networks and Communications

Cite this

Heads or Tails? Network Effects on Game Purchase Behavior in The Long Tail Market. / Kanat, Irfan; Santanam, Raghu; Vinzé, Ajay.

In: Information Systems Frontiers, 01.01.2018.

Research output: Contribution to journalArticle

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