Snickers, Sweaters, and Price Discrimination

Source: EconLog
by Kevin Corcoran

“Today I continue my on-again-off-again theme of ‘Kevin complaining that economists are terrible at naming ideas.’ The inspiration for this post comes from the pricing system used by a clothing store my wife enjoyed perusing. At this location, items of clothing carried price tags that were interestingly different from what you would find at most clothing stores. Each item of clothing had multiple prices listed on the tag, along with a series of dates associated with the price. The longer an item of clothing went unsold, the lower its price would drop – and the date of each decrease was listed on the tag. … my first comment was ‘That’s a really clever way to engage in price discrimination.’ And then I felt the old annoyance inside me about that term, because what most people would think when hearing it is very different from what it actually describes.” (02/09/24)