sion opened up by digital broadcasting mean that a single channel could transmit ratings information that could allow a television equipped with software to block programs based on detailed ratings. The FCC should investigate the degree that its decisions about the V-chip technology can ultimately encourage the use of multiple ratings systems.
|Condition 1: An externality is present whenever some individual's (say A's) utility or production relationships include real (that is, nonmonetary) variables, whose values are chosen by others (persons, corporations, governments) without particular attention to the effects on A's welfare. . . .|
|Condition 2: The decision maker, whose activity affects others' utility levels or enters their production functions, does not receive (pay) in compensation for this activity an, amount equal in value to the resulting benefits (or costs) to others.|
A parallel between pollution and violence exists if violence on television generates negative impacts on society. The National Television Violence Study ( 1996) provides an excellent overview of the research demonstrating how violent programming may generate aggression, fear, and desensitization among some child and adult viewers. The NTVS emphasizes that the context of how violence is portrayed may increase or decrease the likelihood that the programming may have undesirable effects on some audiences. Though children are unintended audiences for violent programs aimed at adults, the second year research report by the National Television Violence Study researchers ( 1997) indicates that programming specifically aimed at children contains a high level of violence and uses violent portrayals that carry high risks for young viewers.