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Use economic theory to argue that internet pornography constitutes a negative consumption externality. From a policy...

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?

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Answer #1

Internet pornography is largely positive correlated with rape and crime cases like extortion and sex racketing and hence produces negative externality which hampers socio cultural beliefs and values.

Hence pornography should be banned completely through strong IT audit and Information sharing norms and keeping close monitoring of websites and browsers allowing such content. Strong penalties and license seizure can aggravate the impact and eliminate negative externality.

Optimal rate cannot be zero due to illegal content sharing ajd P2P webistes which are not monitored.

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