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The Stonehenge tunnel: analysing the costs and benefits

behavioural economics

Price discrimination

A 2015 report from the New York City Department of Consumer Affairs surveyed around 800 products with male and female versions across more than 90 brands. It concluded that on average products aimed at women cost around 7% more. Caroline Elliott finds out why

Is it legal to charge more for products of a particular colour?

The New York survey found that women’s personal care products were 13% more expensive than comparable men’s products. Women’s clothing was 8% more expensive.

When comparable products targeted at men and women are sold at different prices this is a clear example of price discrimination. More specifically, this is third-degree or multimarket price discrimination, when sellers charge different prices for similar products to different groups of consumers, in this case distinguishing between groups of consumers on the basis of gender.

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The Stonehenge tunnel: analysing the costs and benefits