Binge drinking

a) How does binge drinking represent a market failure?

Drinking is a demerit good because it has negative effect

on your health also drinking can be negative externality.

It means that drinking has negative effect on third parties

as well. For example if somebody gets really drunk they will

do something very bad such as murder, theft etc.

As we know negative externality and demerit goods cause

market failure.

b) What are the new proposals?

The government wants to ban free drinks for women also

they want to put particular alcohol messages on each

table where alcohol is sold and pubs' staff should be trained

according to new regulations

c) To what extent do you believe any one, or the combined proposals,

are likely to be successful?

I think that banning free drinks for women is not a good idea.

If government ban free drinks people will buy them but anyway

it will not solve the problem because people are addicted.

Training staff should help to this problem. If people get drunk

they will persuade them to do not drink anymore or something

like that.

The last proposal is to put special message about alcohol on

each table. I think it will not help at all. Everybody see

the same message on cigarettes but they still buy it. The

same situation with alcohol. I think people will not pay any

attention on this messages.