Fireworks

Everyone loves a good fireworks show, so why is it so difficult to stage Vancouver's Celebration of Lights every year? After two weeks of uncertainty surrounding funding, the organizers have now confirmed that the show will go ahead this year.

It is estimated that 1.4 million people watch the pyrotechnic display over the four days in July.

In economics, we identify a "public good" as a good or service which is non-exclusive and non-rivalrous. The first term means that the exhibitor cannot stop someone from enjoying the show if they refuse to pay. The second term means that one more person watching the show does not detract from the enjoyment of everyone else. When these conditions are present, private firms have no incentive to produce.

If everyone that watched the shows sent $3 each to the organizers, the show would have sufficient funding for next year's production. But suppose that I go to English Bay and don't pay. After all $4.2 million minus $3 is still very close to $4.2 million. What if everyone thinks that way? No show next year.

Public goods must be provided by the government or by some institution that can raise funds. Previous to a change in advertising laws, Benson & Hedges sponsored the show under the name "Symphony of Fire".

Perhaps some marketing student somewhere can think of a novel way to raise funds for next year's show.

Click here for the Celebration of Lights website.