Economic cost–benefit analysis of the addictive digital game industry

Dong J. Cho, Hyung T. Kim, Jaywon Lee, Sang H. Park

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

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.

Original languageEnglish (US)
Pages (from-to)638-642
Number of pages5
JournalApplied Economics Letters
Volume25
Issue number9
DOIs
StatePublished - May 21 2018

Fingerprint

Cost-benefit analysis
Economics
Industry
Addiction
Costs
Economic cost
Counseling
Economic benefits
Crime
Proportion
Welfare loss
Costs and benefits
South Korea

Keywords

  • Digital game industry
  • economic cost–benefit analysis
  • game addiction
  • policy recommendation

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Economic cost–benefit analysis of the addictive digital game industry. / Cho, Dong J.; Kim, Hyung T.; Lee, Jaywon; Park, Sang H.

In: Applied Economics Letters, Vol. 25, No. 9, 21.05.2018, p. 638-642.

Research output: Contribution to journalArticle

Cho, Dong J. ; Kim, Hyung T. ; Lee, Jaywon ; Park, Sang H. / Economic cost–benefit analysis of the addictive digital game industry. In: Applied Economics Letters. 2018 ; Vol. 25, No. 9. pp. 638-642.
@article{8f075c832e9749e3a422e444b2598e2f,
title = "Economic cost–benefit analysis of the addictive digital game industry",
abstract = "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.",
keywords = "Digital game industry, economic cost–benefit analysis, game addiction, policy recommendation",
author = "Cho, {Dong J.} and Kim, {Hyung T.} and Jaywon Lee and Park, {Sang H.}",
year = "2018",
month = "5",
day = "21",
doi = "10.1080/13504851.2017.1355528",
language = "English (US)",
volume = "25",
pages = "638--642",
journal = "Applied Economics Letters",
issn = "1350-4851",
publisher = "Routledge",
number = "9",

}

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.

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

UR - http://www.scopus.com/inward/record.url?scp=85024488827&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85024488827&partnerID=8YFLogxK

U2 - 10.1080/13504851.2017.1355528

DO - 10.1080/13504851.2017.1355528

M3 - Article

AN - SCOPUS:85024488827

VL - 25

SP - 638

EP - 642

JO - Applied Economics Letters

JF - Applied Economics Letters

SN - 1350-4851

IS - 9

ER -