Externalities of network game consumption

With sustainable development of China´s social economic and increasing competitive pressures, the consumptive external problem of network game as the representative of addictive products becomes more and more prominent and also makes the great challenge on the national public security and public health. Under the assumption of rationalinality, this paper focused on the existence of the network game consumption externalities. Based on the Becker-Murphy model of rational addiction and method of dynamic optimization, we discussed the impact of the group pressure on total utility with optimal consumption path, and the results showed that existence of the externalities of network game consumption depended on the consumer´s value of the status of friends loop.