Tickets for events, travel, and other services are a hot commodity that millions purchase each year. But there is an ongoing debate about whether tickets should be classified as consumer goods. In this article, we’ll analyze both sides of the argument and look at evidence to determine if tickets meet the criteria for consumer goods.
What are consumer goods?
Consumer goods are products that are purchased and consumed by individuals or households. They can be tangible physical products or intangible services. According to economic theory, consumer goods have two defining characteristics:
- They satisfy consumer wants and provide utility.
- They are used up or consumed within a short period of time, ranging from minutes to a few years.
Some examples of traditional consumer goods include food, clothing, electronics, furniture, cars, and recreational activities. Services like healthcare, education, insurance, and transportation are also classified as consumer goods.
Key attributes of tickets
Now let’s examine some key attributes of tickets to see if they align with the criteria for consumer goods:
Tickets provide utility and satisfy wants
Tickets give buyers access to an experience or service. Whether it’s a concert, play, sporting event, train ride, or airline flight, tickets unlock desired entertainment, travel, and leisure activities. They satisfy consumer wants and provide utility in the form of memorable experiences, transportation to destinations, and more. This aligns with the first characteristic of a consumer good.
Tickets are used up and expire
Tickets are valid for one-time use or a defined time period. Event tickets allow one-time admission to a concert or game. Meanwhile, train and plane tickets are valid for the scheduled travel dates. In both cases, the ticket expires after it is used up for its intended purpose. Tickets are not durable goods that buyers can continue using indefinitely. Their temporary lifespan means tickets check the box for the second attribute of a consumer good.
Tickets are non-capital purchases
Consumer goods are products consumed over the short term, whereas capital goods are durable assets used to manufacture consumer goods and services over many years. Things like factories, machinery, and technology are capital goods. Tickets are clearly not capital purchases. Event, travel, and activity tickets are bought by final consumers and used for non-business purposes.
Counterarguments against tickets as consumer goods
Despite meeting the technical criteria above, some economists argue tickets have unique characteristics that differentiate them from mainstream consumer goods:
Tickets are not tangible items
Most physical consumer goods can literally be consumed. Food gets eaten, clothes wear out, cars deteriorate over time. Services are intangible experiences. But tickets occupy an interesting middle ground between goods and services. Tickets are physical items, but their only purpose is intangibly granting admission to an event or travel service. Tickets themselves are not consumed in a literal sense. This leads some experts to say tickets do not neatly fit in either category.
Tickets can be resold
Another distinctive factor is that tickets can be resold in secondary markets. Unlike most consumer goods, the original ticket buyer does not always end up being the ultimate consumer. For example, concert tickets are often resold multiple times online before the event. Some economists argue this makes tickets more akin to assets or investments rather than disposable, nondurable goods consumed immediately by buyers.
Tickets have flexible pricing
Consumer goods generally have fixed retail prices, while assets like stocks fluctuate in value. Event and travel tickets are priced dynamically based on factors like supply and demand. Top concerts and games command premium ticket prices, while unpopular events struggle to find buyers even at low prices. Plane tickets for busy travel dates skyrocket in price. The fluid pricing and perceived investment value of tickets sets them apart from consumer staples like food or clothing with predictable, fixed costs.
Weighing the evidence
While tickets do have some idiosyncrasies, the bulk of evidence points toward classifying them as consumer goods:
| Attribute | Alignment with Consumer Goods |
|---|---|
| Satisfy wants | Yes |
| Consumed over short term | Yes |
| Purchased by consumers | Yes |
| Durable over many uses | No |
| Tangible item | Partially (physical ticket but intangible access) |
| Fixed pricing | No |
The fact that tickets provide utility, expire quickly, and are bought by regular consumers strongly suggests they belong in the consumer goods category. Their intangible nature and flexible pricing make classification a bit ambiguous, but not enough to disqualify them. The purpose and use case of tickets closely aligns with recognized consumer goods.
Conclusion
Based on their attributes and how they satisfy consumer wants, tickets are best categorized as consumer goods in economic terms. While they do have some nuances like resale markets and dynamic pricing, tickets are predominantly short-term purchases made by individuals for personal use. The temporary and expiring nature of tickets makes them a consumable product rather than a durable asset. Considering how pervasively tickets are bought and used by consumers, it is reasonable to group them under the umbrella of consumer goods.