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April 18, 2023
From Guest Blogger Victoria Ng
Harry Styles is one of three musicians to have a banner commemorating his record-setting run of shows at Madison Square Garden, For his 15 performances, MSG sold 277,000 tickets and grossed $63.1 million. With people willing to pay over $1,000 (U.S. median weekly earnings were $1,085 at the end of 2022) for a ticket to see the star himself, I wondered about those skyhigh prices.
But don’t worry, an economist can explain.
Below, Harry Styles reacts emotionally to the banner:
Harry Styles: Demand Determinants
In so many ways, the name Harry Styles shifts demand curves to the right.
Substitutes
There’s no substitute for Styles. After the band he was a part of, One Direction, split up, Styles’s popularity skyrocketed compared to his former band members. As a substitute, he reduces others’ demand.
In addition, his utility is incomparable. An economist defines utility as satisfaction coming from a good or service. During his 1.5 hour shows, you never feel the need to sit down once. At the end, as he dances off the stage, you even feel a wave of loss. You feel like you are losing that utility.
Complements
Furthermore, once you’ve purchased a ticket, your demand increases for his complementary goods. A t-shirt might go for $40 and a sweatshirt for $70. To any ordinary person, these prices may seem too high, but once you’ve spent one dollar on Styles, you never want to stop.
Our Bottom Line: Inelastic Demand
It all adds up to Styles’s success demonstrating inelastic demand. No matter the price, his fans’ quantity demanded stays constant, Rather amazingly, people are still willing to pay thousands of dollars to see him again.
As someone with inelastic demand for Harry Styles, I’m looking forward to my 6th show.
Billboard, here and here, and my firsthand contact with Love On Tour were our primary sources for facts.
