An exercise equipment company and an expensive banana may not have much in common on the surface. In fact, in my entire lifetime I am not sure that I could fathom the connection myself. The answer to a question that no one asked, however, did manifest itself recently. The answer swooped in mysteriously, through the back door one might say. Once it presented itself, it became clear as day.
For the uninformed, the company Peloton released a commercial where the protagonist is gifted one of their stationary exercise bikes for a Christmas gift from her husband. This ad was quickly deemed sexist by some, and poor marketing by others. The criticisms took their toll, and Peloton lost roughly $1.6 billion in market value (per the Wall Street Journal). The other half of our curious connection involves an art piece which wholly consists of a banana duct taped to a wall, titled “Comedian” by Maurizio Cattelan. This piece was apparently paired with instructions to replace the banana every week or so. Lastly, this eccentric piece came with a price tag of $120,000 to $150,000 (according to the New York Times and ArtNet News). If you are expecting an in-depth look at the meaning or message behind this piece, please quit reading now. You will not find one here.
These two events have given our country as a whole to reflect on what is happening in the big picture: the free market is working perfectly. Sure, a mildly-questionable advertisement should not cost the company $1.6 billion, and a banana and strip of duct tape should not be sold for over $100,000. Under the microscope, these do not make sense. In this writer’s mind, neither do clothes for pets or having machines in homes such as the Amazon Echo. However, ignoring the tinfoil hat, all of these make sense for one reason. The free market allows people the freedom to place values which they think is fair on objects which they like or hate. Such actions give items an honest value, which is what people will pay for them. In fact, the first definition of “value” from Merriam-Webster is the monetary worth of something. So in that regard, the value is found to be pretty cut-and-dry here. Some art collectors really liked a banana (or the message it carries, or maybe the duct tape) and some others saw a loss in value due to negative feedback regarding a commercial. As long as the market decides such things, and continues to regulate itself, we can rest assured that in this instance of perfect irrationality, the market reacted in a perfectly rational way.
Granted, we do not live in a perfectly free market system. On the other hand, when the market works like it should then the market flourishes. Self regulation in this aspect is the best way to keep prices fair and help consumers as well as continue to uphold personal freedoms for individuals and businesses. For those who saw Peloton’s ad and disagree with it, but still want to use a stationary exercise bike, they will take that money and support a different business with it. Look for your neighbors at the local gym or purchasing their own NordicTrack. “Comedian” is providing Mr. Cattelan with finances to spend where he wants to. And I am saving money on keeping Alexa out of my house to purchase gasoline or a nice dinner. The market allows us the freedom to decide whether or not Fido’s sweater is really worth upwards of $34.99 or if that money is better spent on a new book or fan gear for the local football team (hint: it’s the fan gear).
Sources:
https://www.wsj.com/articles/backlash-over-controversial-ads-often-proves-short-lived-11575645018
https://news.artnet.com/art-world/maurizio-cattelan-banana-collector-1728009
https://www.nytimes.com/2019/12/08/arts/design/a-critics-defense-of-cattelan-banana-.html
Bayou Observant 