Individuals who immerse themselves in the world of economics often exhibit reactions that may seem peculiar to the uninitiated.
Take, for instance, my recent experience registering for a 10k run in Astoria, Oregon. As part of the registration process, participants had to select a time to collect their race packets (which included, among other essentials, a race bib equipped with a time tracker). Several time slots were available in the days leading up to the race, along with an option to pick up the packet on race day itself, albeit with a âconvenience feeâ of approximately $25. Upon seeing this fee for the most convenient pickup option, my immediate response was, âHow thoughtful!â
My reasoning unfolded like this: each year, thousands of runners participate in this event. The race organizers face the daunting task of readying all these participants in a relatively short window on the morning of the event. Encouraging early packet pickups significantly streamlines the process. If hordes of runners were to converge on race day to collect their packets, the entire operation would be bogged down. Therefore, implementing a fee serves a logical purposeâit reduces the number of last-minute pickups and ensures that those who opt for the convenience are precisely those who value it the most.
This incident is merely one of many occasions when Iâve felt a sense of gratitude for services that arenât offered for free.
Another instance of this occurred when I began my tenure at the Medical University of South Carolina in Charleston years ago. The MUSC campus downtown boasted a gym facility. While members of the public could purchase a membership, MUSC employees, faculty, and students enjoyed a discounted rate as a perk. I recall a colleague lamenting, âWhy do we only get a discount? Since we work here, we should have free access to the gym!â Personally, I was relieved it wasnât complimentary. With tens of thousands of employees, students, and faculty accessing the gym, a free-for-all would be less than desirable. Even with the fee, the gym was often crowded. If it were free, it would likely become utterly unusable.
Another straightforward example is parking at the airport. Whenever I fly out of Minneapolis airport and leave my car there, I invariably find myself navigating the parking garage several times to locate an available spot. If parking were free, the hunt for a space would escalate from mildly challenging to a near-miraculous endeavor.
There are two distinct questions that people often confuse. The first is simple: âWould I enjoy having this service for free?â (The answer is a resounding yes!) The second, more nuanced question is, âDo I want to inhabit a world where everyone has free access to this service?â The answer to that is almost universally an emphatic no.
When I receive something of genuine value that significantly enhances my experience, my instinct is to feel a profound sense of appreciation that I paid for it and that it wasnât free. This sentiment is one of the many ways that grasping concepts such as trade-offs, opportunity costs, and scarcity can deepen our understanding and enrich our experience of gratitude. In an era where appreciation often seems scarce, perhaps a little more of it is just what the world needs.
