In the News
Tesco abandons razor blade price discrimination
2nd January 2017
Tesco has announced it is ending the practice of charging more for women's razor blades than men.
They argue that economies of scale have helped explain some of the price difference. The bigger volume of men's razors sold should in theory lead to lower long run average costs. But we shouldn't take that justification at face value!
As you can see from the graphic below, Gillette is the dominant firm in the women's razor market in the UK.
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.
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4.1.5.7 Price Discrimination (AQA Economics)
Study Notes