Kobe Luminarie Going Under

In Kobe, Japan, every year the Luminarie is held. It is a light show which is kept up for two weeks, with lights turned on for a few hours every evening. The purpose for the light show is to remember those who died in the Great Hanshin Earthquake in 1995. It is for many people a very important tradition to go there every year to show respect to any relatives or friends who might have died in the earthquake. For many others a nice place for a date or to enjoy the food from the little market held around the area of the light show. There are however many rumors about not holding the Luminarie next year due to the extremely high costs to hold it. It would be a huge mistake to not hold this beautiful light show due to high costs. The Luminarie supports something so much greater than money. Which people should realise but ofcourse in our world people do not always realise that. Therefore, to get rid of the market failure the Luminarie should hold a very small enterence fee next year to make sure that the Luminarie is not lost. The Luminarie should not be there to go profit, it should be there to reach a break even price. This could probably be reached if a enterence fee of only 100 japanese yen per person was charged, due to the so many people going there every year. This would get rid of the welfare loss which is shown in the graph below. In the graph one can also see the reason for the market failure. It is simply because the Marginal Social Cost is so much greater then the Marginal Public Cost that there is a negative externality. This event needs a change soon in order to survive.