This study examines the relationship between the “small world” phenomenon on the network and the behavior of purchasing digital items through the panel VAR(PVAR) model. In addition, we empirically analyzed whether the main driver of the small worl...
This study examines the relationship between the “small world” phenomenon on the network and the behavior of purchasing digital items through the panel VAR(PVAR) model. In addition, we empirically analyzed whether the main driver of the small world in the network is the clustering of networks using PVAR and impulse response function(IRF). In this study, we used panel and time series data analysis methods to empirically study the dynamic and interactive relationship between in- and out- closeness centrality indicating how close the members of the network are, the amount of digital item purchases, and the clustering coefficient indicating the density of the network. The results of this study are as follows. First, the closer people are to other people, the more they purchase digital items, and conversely, the purchase of digital items narrows the distance from other network members. Second, as the clustering decreases, the distance between people decreases. In summary, this study revealed that digital item purchase and distance on the network have a significant positive interaction, and that reducing the clustering plays a role in reducing the distance between people.