Question

Online pornography predicts a number of negative outcomes. Viewing pornography causes interest in deviant and illegal behaviours, heightens computer addiction, and deleteriously impacts the brain. Indeed, online pornography can be addictive, harming work productivity and relationships.
Use economic theory to argue that internet pornography constitutes a negative consumption externality. From a policy perspective, how would you deal with this problem? Is the optimal rate of online pornography zero? Explain in 500 or words or less, using a diagram.

Answer 1

Online movie watching depicts the case of negative consumption externality because marginal social cost associated with online watiching is more than marginal private costof it. This is because ot not only hampers the productivity and efficiency of the person viewing this stuff but also society at large because it leads to illegal behavior which can be deterimental for the society. The person also harms the near and dear ones. Also it reduces productivity of the person which reduces overall output produced in the society as the contribution of the person to the society reduces. Thus, marginal social cost exceeds marginal private cost and is an example of negative consumption externality.

The government can deal with the problem by imposing taxes on those who view online movie which will increase marginal cost associated with online pornography and reduce the quantity of online movie watching in society. The optimal rate is zero but it is very difficult to reduce the amount of online movie watching to zero because some people will still watch it and it is difficult for government to keep track of all persons all the time. Thus, it should be reduced but cannot be brought down to zero,