| China's Online-game industry has achieved amazing growth speed even as a new born industry, it has definitely become a serious economic field whether from the directly promotion of economic, indirectly drive of the neighboring industry or the influence of the social and culture. Judging from the traditional industry division standard terms, online game industry is the typical representative of the Internet industry, at the same time, it also has the significance of culture and creative industry, therefore, it should belongs to the crossing field of two industries. The spiritual and cultural elements of Online-game make its lust for social ideology influence, however, it's features of taking the internet as a main existing carrier and communication media make the more widely and far-reaching influence to the cultural communication and social ideology compared to the other cultural products. In addition to it's promotion to the growth of national economic, the operation of Online-game industry' brought about much lower level of pollution and energy consumption thanks to it's special production, circulation and consumption mode compared with traditional manufacturing and even new industry, thus make it a typical type of low carbon type typical of the low carbon industry, therefore, the development of China's online game industry has the significant social and economic significance.The operation of online-game enterprise always has the high risks even under the momentum of development of industry. As the enterprise has to pay a sunk cost before the operation of products, the uncertainty of market reaction brought about a great risk to the payoff of sunk cost, therefore, the conflict between high sunk cost input and the low level of income under the high risk background compose the core problem of industry development. At the same time, the four basic contradiction exist in the different segments of the industry constitute the restriction to the development. The swing of the earning mode and the profit scale of the industry compose the contradiction which makes the market competition order and the enterprises' behavior became difficult to rule, moreover, cause the damage of the consumers' benefits; The contradiction between the increasing number and varieties of online-game and shortening product life cycle bring huge waste to the whole industry's production and R&D resources, which may cause the reduction of the online-game market performance; The contradiction between the industry's powerful social influence and the government's faint regulation strength leads to the lack of overall planning and policy direction in the develop trend of industry; The contradiction between the industry's profit and the external negative effects brings great negative impacts to the society as well as increases the industrial development of the external resistance. Above all, one core conflict and four basic contradiction constitute the bottleneck constrain to the development of China's online-game industry.Recently, China's online game industry structure is becoming more and more mature whether from the products structure or from the technology of production and R&D, a complete industry chain has also formed which embodies the network game developers, network game operator, channel marketers, telecom operators such as Internet cafes and Internet sites and end users, what's more, the marginal cost of online-game production is almost negligible, therefore, the production capacity of China's online-game industry is very strong. Relative to the certainty of production field, the consumption demand field of online-game exists serious uncertainty since the characteristics of consumption choice and the influence factors are still unknown, Thus the essence of the core conflict of China's online game is the imbalance between the rigidity of production input and uncertainty of consumption demand. Through the economic analysis of the basic profit model, we demonstrates the promotion machenism of consumption choice to the industry's earning capability as leading role, then start the research of the condition of online game industry's profitability and sustainable development under the basic idea that taking the consumption choice problem as the entry point and logic clues of research.As for the basic method, this paper builds a theory framework that expands from consumption choice theory to other segments of industry with the consumption choice area as the center of the system, this research makes up for the interpretation limitation of traditional economic theories in a certain degree while provides explanation and strategies to solve the problem of industry. Since the theoretical models that build for online game also have applicability in related industries fields, therefore, the conclusion of the research has a wide range of space both in the practical application and in the theoretical expansion.This paper is divided into three main parts based on the study structure:An introduction, basic theoretical theory model and explanatory model. In the first part, this paper demonstrates the impact mechanism of online game consumption choice to the problems of industry development based on the induction of a large amount of facts. Through the review of economics research literature of online game industry we found that the network game's consumption choice problem was neglected or avoid as "irrational" in the existing studies, neither the problems of industry development got the reasonable explanation and guidance. In view of this, on the basic of absorption and critical of the predecessors'achievements, this paper constructs the whole framework of study and basic consumption choice model while intergrades the consumption behavior into the standard economic analysis framework.The second part, the basic theoretical model which consist of the construction and demonstration of consumption theory of online game in chapter4. On the basis of observation and summarization of the characteristics of online game's consumption behavior, this paper introduces the particular factors of online game demand into the consumption theory framework and carries out the reconstruction of the preference and utility theory system, thus finished the construction of online game consumers' utility function based on the analysis of utility and preference characteristics, furthermore, we demonstrates the characteristics and the general rules of consumption demand by derivation of utility function under different form and restriction condition, thus makes a proprietary consumption theory framework that different from the traditional theories.The third part, theoretical model of application. On the foundation of network game consumption choice theory framework that finished in second part, in this part we starts the expand extensions from the platform of consumption choice theory and constructs a series of explanatory models by introducing the consumption choice into the online game industry operation system as the driving force and leading factor, meanwhile, further promotes the deepening and extension of consumption choice in the theoretical system by combination with the practical problems in different elements of industry development.Firstly, through the combination of consumption choice and online game enterprises'operation mechanism, this paper constructs the earning mechanism of online game under different profit models, as well as verifies the consistency of enterprises'profits and customers'benefits by the incentive compatibility model, thus gets the conclusion that profitability of online game enterprises depend on the level of consumers'benefits.Afterwards, this paper carries out the study of the continuation model of online game's life cycle from the angle of consumption choice based on the analysis of earning mechanism, and analyses the fluctuation of consumers'benefits and demand in different stages of life cycle, then gets the conclusion that the continuation of online game's life cycle depend on the choice cost in entering stage and the conversion cost in sustaining period by the construction and analysis of network game consumption cycle model.Finished the study of enterprises and products, this paper introduces the consumption choice factor into the level of market competition, through the analysis of the online game market structure formation mechanism we concludes that the consumption has the role of promotion in the ascension of market concentration, furthermore, through the analysis of market performance model which contains the welfare of consumers, we get the conclusion that under the certain market size, the level of market concentration is proportional to the enterprises'profits, the consumers' welfare and the total welfare of society.Besides the earning of industry itself, the compatibility with the social environment is also involved in the sustainable development of online game industry, therefore, the social negative external effects caused by addicted consume of online game was made to be crucial. In the last chapter of the second part, based on the consumption choice theory and the induction of the characteristics of addicted consumption behavior, this paper constructs the addicted consumption model and gives the economic explanation to the online game addiction which was considered to be a typical social psychological problem, and the existence of optimum equilibrium conditions in the long-term consumption path indicates that online game addiction is also the performance of rational consumption choice in particular constraints, therefore, in the management of addicted consume, internal intervention by influencing the optimum equilibrium conditions of consumers should be more effective than external constraints.To sum up, the research of this paper is to study the condition of China's online game industry earning and sustainable development, the incompetent of the existing theoretical research in the explanation of the above problem made the background of this study a conflict of theory and reality. Under the choice cost paradigm of brand economics, this paper takes consumption choice as the first angle of view, and carries out reasonable explanations to consumption choice's decisive function mechanism to the industry development, as well as the implementation solutions that act on the consumers group and work through the rational consumption choice mechanism, thus provides a theoretical reference to the profitability ascension and sustainable development of China's online game industry.
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