China's Online Game Industry Economics

It is only a dozen years ever since the on-line game was developed. Because of the characteristic of the on-line game, many people think about it combined with the heath of hobbledehoy. They pay excessive attention to the negative affect of the online-game, so that the new thing is not be accepted by the whole society. However, the online-game industry is developing at a striking pace. Actually the production value of the online-game industry now has surpassed that of the whole movie industry In the USA, South Korea and even China. It is becoming a stanchion of the culture industry in the new-economy age at present, and is now exerting its multiple effects in the whole society.Some domestic departments have already paid much attention to the on-line game and made some policies. More and more describing or commenting articles can be seen in the newspapers, magazines and electronic media. But, there are still no economic analysis concerned with it, and seems necessary to have to supply more academic analysis and supports.In the analysis, I try to use the SCP mode to do the industry organization analysis for the first time. By analyzing the industry, we find that the on-line game market is a high concentrating oligopolies and monopolistic market with some production differentiation and industry barriers, and that "tie-in sale" and "second degree price discrimination" strategies are used in the pricing conducts, and that it is a industry with high risks and considerable rewards, but this high profit margin will decline sharply with the rapidly expanding scale of the industry.Based on the mathematical model, the thesis make modeling analysis on the R&D problem and "illegal server" problem which are two of the most serious problems in on-line game industry. In the economic analysis of R&D problem, we firstly use expected utility model to analyze all factors that have effect on R&D investment, then, by modeling the cooperative R&D, we draw the conclusion that the investment is not enough at present and it is valuable to set up risk-disperse mechanism and cooperative R&D mechanism. In the economic analysis of "illegal server" problem, we use the "Hotelling model" for the first time. It should be paid much attention that, after analysis the welfare effect of "illegal server", we find theexist of "illegal server" recently still have some welfare effect, but with the development of the national economy and on-line game industry, this effect will die away, and the "illegal server" will have only negative effect. At that time, we should clampdown the Illegal server" because it is neither rhyme nor reason. At last, there are some suggestions for these two problems.At the end of the thesis, some considerations and suggestions are given for the development of the on-line game industry, based on an example.Zhang Enwei (Industrial Economics) Directed by Zhang Lijuan...