The Analysis of Arbitrage Capital Flows between Online Virtual Game and Real Economy Based on Risk Premium

With the rapid development of network game, the in-world economic activities become increasingly complex and form a relatively independent network virtual economy. As capital inflow from the real world is the key element supporting the functioning of virtual world, we established an arbitrage capital flow model based on relative risk premium between the two worlds, explored the interest rate mechanism in the virtual economy that the interest rate of virtual currency will be maintained within a certain interval, and change in the same direction with the interest rate of real currency. We discovered that the large scale of arbitrage capital flows may have asymmetrical impacts on the game operators, game users and the exchange rate, while capital flight will be destructive to virtual economy. Finally, we give some advices to the game operators on how to avoid the negative impact of arbitrage capital flows and maintain virtual economy´s long-term stability.