TY - JOUR
T1 - Economic cost–benefit analysis of the addictive digital game industry
AU - Cho, Dong J.
AU - Kim, Hyung T.
AU - Lee, Jaywon
AU - Park, Sang H.
N1 - Funding Information:
This work was supported by the National Research Foundation of Korea [2012031717] and the Kim Jung Woo Chair of Accounting Stipend at Solbridge International School of Business.
Publisher Copyright:
© 2017 Informa UK Limited, trading as Taylor & Francis Group.
PY - 2018/5/21
Y1 - 2018/5/21
N2 - This study attempts to estimate the economic costs and benefits of the addictive digital game industry. Addiction to digital games induces economic costs such as increase in crime, facilities investments for curbing addiction, increase in counselling costs and other welfare losses. As a case study, we investigate the digital game industry in South Korea which is known to have one of the highest rates of game addiction. According to our calculations, the annual cost of game addiction is estimated to be approximately $3.5B while the annual benefit is approximately $24.3B ($3.7B for addicted user market). The proportion of the total costs to total benefits from the game industry is an alarming 14% (95% for addicted user market). We offer some policy recommendations.
AB - This study attempts to estimate the economic costs and benefits of the addictive digital game industry. Addiction to digital games induces economic costs such as increase in crime, facilities investments for curbing addiction, increase in counselling costs and other welfare losses. As a case study, we investigate the digital game industry in South Korea which is known to have one of the highest rates of game addiction. According to our calculations, the annual cost of game addiction is estimated to be approximately $3.5B while the annual benefit is approximately $24.3B ($3.7B for addicted user market). The proportion of the total costs to total benefits from the game industry is an alarming 14% (95% for addicted user market). We offer some policy recommendations.
KW - Digital game industry
KW - economic cost–benefit analysis
KW - game addiction
KW - policy recommendation
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U2 - 10.1080/13504851.2017.1355528
DO - 10.1080/13504851.2017.1355528
M3 - Article
AN - SCOPUS:85024488827
SN - 1350-4851
VL - 25
SP - 638
EP - 642
JO - Applied Economics Letters
JF - Applied Economics Letters
IS - 9
ER -
