In 2019 I stayed up all night to watch the Back Caps lose the World Cup One-Day final in England in what was such a bizarre finish and one felt for Kane Williamson and the side. However two years later and all has been forgotten as the Back Caps become the first ever World Test Champions. Captain Williamson like Richie McCaw, a humble character, has led from the front and just goes about his work in a quiet manner.
Black Cap supporters will take great pleasure in talking about such a result but what all this alludes to is the fact that as part of this entertainment comes without the public paying for it, the public benefits from an externality.
Those who were able to travel to Southampton for the game and will have no doubt spent a significant amount of British pounds tonight in the bars and restaurants around town. Nevertheless the satisfaction (utility) derived in pounds from the game would have been much greater than the price they paid for the ticket. This suggest that there is a lot of consumer surplus present – the difference between the price that a consumer WOULD BE WILLING TO PAY, and the price that he or she actually HAS TO PAY. Furthermore the lead up to the game brings about a sense of delayed gratification (Behavioural Economics) especially after the disappointment in 2019 World Cup. Research (Smarter Spending – see previous post) shows that owning material things from expensive homes to luxurious cars turn out to provide less pleasure than holidays, concerts or even witnessing the Back Caps winning the first ever Test World Cup – where were you when the Black Caps beat India in Southampton? With New Zealand’s win national pride increases, along with patriotism and people feeling better about themselves. This in turn brings people together and boosts well-being of the nation.