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Davis Thesis 2023.pdf (461.38 KB)

ETD Abstract Container

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The Decision to Produce a Network Good: A Model Of Video Game Competition With Insights From Limited Data

Davis, Grant M
http://orcid.org/0009-0007-3379-4715
http://rave.ohiolink.edu/etdc/view?acc_num=miami1689958553409552

Abstract Details

2023, Master of Arts, Miami University, Economics.
The video game industry is a unique example of an industry with network goods. Firms can decide whether to produce a network good or a non-network good (i.e., a single-player or multiplayer game). In this paper, we show how this choice changes based on game quality and the strength of network effects. Using a Hotelling line with network effects, we find that if the difference in value is sufficient, the firm producing the lesser value game will choose to always produce a single-player game. Furthermore, with sufficient difference in value, an increase in network effect strength increases profits for the firm producing the higher value game. We conclude that competition can bar game developers from entering the multiplayer space if they are unable to produce games with sufficient quality relative to potential competitors. Using data from the video game platform Steam, we provide some insights into our model results, however significant issues in our datset prevent us from reaching a definitive conclusion.
Mark Tremblay (Advisor)
Jonathan Wolff (Committee Member)
Charles Moul (Committee Member)
34 p.
Economic Theory; Economics
Network effects; video games; Hotelling line; duopoly;

Recommended Citations

Citations

  • Davis, G. M. (2023). The Decision to Produce a Network Good: A Model Of Video Game Competition With Insights From Limited Data [Master's thesis, Miami University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=miami1689958553409552

    APA Style (7th edition)

  • Davis, Grant. The Decision to Produce a Network Good: A Model Of Video Game Competition With Insights From Limited Data. 2023. Miami University, Master's thesis. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=miami1689958553409552.

    MLA Style (8th edition)

  • Davis, Grant. "The Decision to Produce a Network Good: A Model Of Video Game Competition With Insights From Limited Data." Master's thesis, Miami University, 2023. http://rave.ohiolink.edu/etdc/view?acc_num=miami1689958553409552

    Chicago Manual of Style (17th edition)

miami1689958553409552
78
© 2023, some rights reserved.Creative Commons License The Decision to Produce a Network Good: A Model Of Video Game Competition With Insights From Limited Data by Grant M Davis is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License. Based on a work at etd.ohiolink.edu.
This open access ETD is published by Miami University and OhioLINK.