An Research On Chinese Network Externalities Product Pricing Question

Over the past 10 years, the rapid development of network game not only manifest the infinite fascination of product with network externalities, also offer endless of opportunity to spur the development of pricing in practice. Pricing of network game have lots of harvest in practice, but, lack of relevant theoretical study to support it, and cannot make use of theory to resolve the drawbacks beforehand which come from "free to play, pay for item" model nowadays, which is have to say it's pity to industry of network game. Under this background, this paper tries to study the history and present situation of pricing in industry of network game, in order to sum up to some disciplinarian.This paper start to relevant theory of industrial organization, describe the main mode of pricing in different phase. Next, analyzing reasons of different mode, emphasizing the network externalities among it influence the way of pricing, and, using a scenario to commentary this theory. Last, we give a relevant conclusion.In the first place, this paper makes contrast with relevant research, expound and prove the significance of study pricing in network externalities. Secondly, we provide information of character about network game; mainly refer to character of network externalities and performances of pricing in different period. Thirdly, we analyzing all kinds of factors which have affect on price of network game, include character of needs; character of markets; and other characters such as distribution channel, profit sharing, we conclude that network externalities in which character of needs and market structure in which character of markets have important influence to pricing. According to study manufacturer how to price in different market structure with theory of industrial organization, analyzing in different market structure with monopoly, network externalities how affect to pricing of network game. Last but not least, we use a scenario to describe relevant theory.It has been discovered that in order to acquire a large size of network need those products which with network externalities pricing lower, and come into being regenerative feedback benefit to competition. But, as for affect of market structure, manufacturer cannot at a low price at first place, and adhere to tradition pricing action that reduce price gradually with maturity of market.