Saturday, May 2, 2009
Sometimes when a new Pasar Malam is opened in the vicinity of your house and you take a stroll, you will notice there are vendors setting up their stall and selling pirated DVDs there.
The externality that I will be talking about today is about the burning and selling of pirated DVDs.
Why is it a POSITIVE externality?
It benefits the public because as typical Singaporeans, we all like to purchase our products at a lower cost. You can save money and use that money to buy something else that you like. Comparing to the price of movie tickets or purchasing an original version from the store, pirated DVDs are much cheaper. Now with advanced technology, the quality of pirated DVDs is much better and the graphics are way clearer compared to before. Why not purchase a cheaper pirated one when the quality is same as the original version?
STOP PIRACY!
Generally, moviemakers and record companies earn their living by producing their own movies and albums. So it is considered a negative externality to them. When people start buying from the vendors selling pirated DVDs, the profit does not go to the moviemakers and record companies. Instead, it goes to the vendors and those involved in the producing of the pirated DVDs. (Example: Blank disc suppliers, people who transfer the files into the disc).
So why should the pirated DVD vendors be the ones benefiting from the hard work and money put in from the moviemakers and record companies? In my opinion, I think they should not engage themselves as selling pirated DVDs for a living. This is because it is like stealing from someone who put in many efforts to produce a work and call it their own.
PeiQing, T01
Labels: externality
We Loved9:59 PM
April 2008