The Economics of MIPIM
A bit like a snowball, when things grow in scale they can develop a gravity that increases their size further until they develop a run-away lead. Economists would call this ‘same-side network effects’. MIPIM is a good example of this – people sign up to go because they know that other people will be there, and so on. This is good for the industry because it creates a density of interactions, and it is fantastic for the organisers for more obvious reasons. The challenge arises when spiky demand exceeds limited supply and local pricing soars. In a free market, rational buyers stop buying when price exceeds utility. As our industry evolves, is it time for MIPIM to call time on Cannes? If so, can I humbly suggest an alternative coastal city with an attractive marina, excellent seafood and much more accommodating rates: Hull.