FOLLOWING PRESENTATION

IS BROUGHT TO YOU

BY YOUR FRIEND

DYLAN HALLIHAN!!

What Are Externalities?

• An Externality is an impact on a party that is not directly involved in the transaction.

• Inevitably these externalities can be positive or negative, (external benefit or external cost).

• Externalities cause a divergence between marginal social cost and marginal social benefit in a market equilibrium situation.

What is Binge Drinking?• Binge drinking is the modern definition of drinking alcoholic

beverages with the primary intention of becoming intoxicated by heavy consumption of alcohol over a short period of time.

• It is a kind of purposeful drinking style that is popular in several countries worldwide, and overlaps somewhat with social drinking since it is often done in groups. However, it is also done alone as a method of self medication.

Interesting statistics!!• In the UK, some areas of the media are spending a great deal of

time reporting on what they see as a social ill that is becoming more prevalent as time passes. In 2003, the cost of binge drinking was estimated as £20 billion.

• Using a 5-drink, 30-days definition, British 15-16 year olds binge drink at a rate of 54%, the fourth highest in Europe, and 46% report intoxication in the

past 30 days

The Positive externalities of Binge

Drinking• To be fair its difficult to see any real and proper positive effects of binge

drinking on society.

• Maybe it can be said that the consumption of alcohol can be used as common ground in bringing together differing societies and cultures, which in the long run can lead to better communications.

• Also with the consumption of alcohol arguably providing differing societies the opportunity to socialise effectively, It could be said that British tourism will receive positive financial rewards as a result. If Britain has a reputation for providing an enjoyable experience involving alcohol then foreign tourists may poor into Britain, seeking a “good time”.

Negative Externalities of Binge Drinking!

• E.G. The USA!! (College Life)Those who engage in binge drinking

are 21 times more likely to: • · Miss class • · Fall behind in their schoolwork • · Get in trouble with a campus authority figure • · Engaged in unplanned sexual activity or not use

contraception in such a situation • · Damage property • · Be injured • · Attempt to drive a car while drunk

Among students who were not binge drinking on a given night, here are some percentages of outcomes for their evenings:

• 71% have had sleep or study interrupted • 23% had a serious argument with the drunk individual • 11% had been pushed, hit, or assaulted by the binge

drinker • 57% had to spend the majority of their sleep time caring for

the intoxicated student • 23% had experienced an unwanted sexual encounter • 36% had been insulted or otherwise humiliated • 6% had property damaged

Then ……..

What we can gather from the example of College life in the

US?• The actions of binge drinking by some students has a

negative knock on affect on others. • This does not just apply in colleges but in societies. Binge

drinking has a number of negative externalities on society.• It can be argued that the marginal private benefit of binge

drinking (irresponsibly) is heavily outweighed by the social cost!

• This is because drinking can lead to some of the following:• Vandalism• Violence• Abusive disturbing language/ irresponsible anti-social

behavioural activity• High cost of rehabilitation of alcoholics! (comes out of tax

payer money)

CONCLUDING VIDEO!!

• http://www.youtube.com/watch?v=96TS9qxnqaM&feature=related