The Industrial Organization Analysis Of Online-game Industry Based On Scp Paradigm

The online-game industry began to grow up in 1990s, although its development has been controversial, it is more and more important to the growth of China's economics. As a new industry, it's necessary to grasp the internal industrial structure as soon as possible, control the industry conduct effectively to get a good industry performance.Studying the online-game industrial organization is the main line of this paper; amendment SCP paradigm was adopted to analysis the industrial organization. Meanwhile, in this paper tow most prominent market behavior:company R&D behavior and "Private Server" problem are especially concerned, and try to find a way to incentive companies to R&D and reduce the harm of "Private Server" problem.According to the analysis of industrial structure, industry conduct and industry performance, we find this three elements has an interaction mechanism. The current market has a high oligopoly and high barriers market structure. This market structure leads to illegal means, "Private Server", to breakthrough the market barriers. At the same time limited market competition leads a good market performance and attracts more manufacturers'entrance. To maintain the existing market share incumbent vendors will raise technical barriers by means of R&D. In the analysis we found positive impact on manufacturers'R&D is the high-risk within the industry. Also we found that in the current time R&D cooperation between enterprises is the most effective means of competition. Although the existence of "Private Server" problem may lead to the increase of social welfare, the social welfare will decrease as the "Private Servers" increase. In the other hand, the existence of the "Private Server" problem also lowered profits manufacturers, blow the activity of enterprises' R&D.Through the study of a representative company in this industry,9you.com, we find that lead the way of independent R&D is the guarantee for the steady development of enterprises. At the same time, with positive response means to deal with "Private Server" problem. This is also consistent whit the analysis of the whole industry.