- Informational disadvantages: Women are not as informed about the prices of alternatives and so are more willing to suck it up and pay the higher price.
- Indirect Price Discrimination: Women have more inelastic demand and so it is profitable to charge them more.
- Selection by preference for quality: These products may have lower quality, 'generic' versions, the price of which we do not observe. It could be that men/boys are more willing to trade-off quality for price while the women/girls who prefer the quality product really prefer the quality product.
- Cost differences from scale economies: Women/girls may prefer a greater variety of consumer goods (e.g., wedding dresses versus wedding suits). This means that there are fewer units purchased for any specific item. With economies of scale, the version for men/boys will have lower average cost than the version for women/girls.
Wednesday, December 23, 2015
Why do Women pay More?
The Washington Post is reporting that NYC Department of Consumer Affairs has found that items targeted to women/girls are pretty consistently higher priced than those targeted to men/boys. Often the only perceptible difference is the color and packaging, as in these scooters: