Dear Editor,
The decision to allow free access to all venues where events are being held is incredible. The last thing you would expect of a scarce commodity (good or service) is for it to be free. Carifesta events are scarce commodities because their seating capacities are limited.
Price is the tool used by society to allocate its scarce resources. When a commodity is priced properly, the resulting allocation can be efficient, ie, its demand exactly equals the supply of it. Those who don’t value the commodity at its price level would not use it, resulting in adequate supplies for those who place an equal or higher value on it. Under these conditions, there are no shortages. However, when priced below that equilibrium level, shortages occur as consumers willing to pay more because they value it more than the price, cannot satisfy their wants.
Unfortunately, this very basic economic concept and its consequences were lost on the Carifesta planners.
Pricing tickets at zero will create a severe shortage of seats. But even worse, the shortage of seats coupled with the incongruous feature of empty seats at the events is a likely characteristic. This comes about because there are no consequences to consumers for taking unwanted tickets up to the rationed level but having little intention of using them.
The shortage was evident on Wednesday at 14:30 hours when I attempted to obtain tickets at the National Cultural Centre but was told the only tickets available were for August 25 at the National Exhibition Centre, Sophia. To put this in perspective, three-and-a-half hours after the commencement of ticket distribution, most of the events were already closed-out at this major distribution point. The long lines at the Cliff Anderson Sports Hall and Carifesta Commission led me to believe that many waiting in line would be disappointed. This is a classical case of a shortage. It made me realize that the relatives I invited to visit Guyana for the festival were fortunate they could not come. It would have been an embarrassment, and for them, a disappointing investment in a vacation. Happily, the Super Concerts, sponsored by Banks DIH, are not free and thus will not be affected by similar shortages.
Shortage caused by the mispricing of Carifesta X events tickets is a major flaw in its planning and will mar much of the effort of so many to make it a success.
Yours faithfully,
Louis Holder
