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Market Failure

Market Failure . Violence in Videogames Radu Costin. Violence in Videogames. Market Failure Graph. PMC. Pfm. Dead Weight Loss. Ps. PMB. SMB. Qs. Qfm. Why is it Market Failure?.

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Market Failure

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  1. Market Failure Violence in Videogames Radu Costin

  2. Violence in Videogames

  3. Market Failure Graph PMC Pfm Dead Weight Loss Ps PMB SMB Qs Qfm

  4. Why is it Market Failure? • Consumers of videogames only consider their own private costs and benefits of consumption, so there is over-consumption at (Qfm). • The effects on other consumers caused by videogames is considered to be negative, therefore the socially desirable level of videogames is (Qs). • In a free market there is over-consumption of videogames as external costs (eg. hospital bills caused by violence stimulated from videogames.) are not considered, which causes dead-weight loss (as shown in the graph), and therefore there is market failure.

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