Pricing model dynamics in the Chinese online game market

    Research output: Chapter in Book/Report/Published conference proceedingChapter

    Abstract

    This chapter examines how incumbent firms respond to the industrial pricing dynamics with the adjustment of their own pricing strategies so as to create and sustain their market share dominance. The empirical context of this chapter is the strategic behavior of online game operators (i.e. the companies who operate online games) in the Chinese online game market, one of the most active markets in the world with strong network effects. This chapter introduces Velu’s business model theory in the market with strong networks. Further, in this research, the authors extend Velu’s research by challenging some of his propositions by a careful observation of pricing dynamics in the Chinese online game industry since 2000 and how dominant and non-dominant incumbent firms adjust their pricing strategy. In the Findings Part, this paper explains why acquisition is regarded by main dominant game operators as the most effective way to complement their pricing model revolution.
    Original languageEnglish
    Title of host publicationElectronic globalized business and sustainable development through management
    Subtitle of host publicationStrategies and Perspectives
    EditorsPatricia Ordóñez de Pablos
    Place of PublicationNew York
    PublisherIGI Global Publishing
    Chapter10
    Pages135-146
    ISBN (Electronic)978-1-61692-848-3
    ISBN (Print)978-1-61692-846-9
    DOIs
    Publication statusPublished - 2011

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  • Cite this

    Ren, Q. (2011). Pricing model dynamics in the Chinese online game market. In P. Ordóñez de Pablos (Ed.), Electronic globalized business and sustainable development through management: Strategies and Perspectives (pp. 135-146). IGI Global Publishing. https://doi.org/10.4018/978-1-61520-623-0.ch010