Disposable Razor

Published: Feb. 25, 2017, 2:09 p.m.

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King Camp Gillette came up with an idea which has helped shape the modern economy. He invented the disposable razor blade. But, perhaps more significantly, he invented the two-part pricing model which works by imposing what economists call \\u201cswitching costs\\u201d. If you\\u2019ve ever bought replacement cartridges for an inkjet printer you experienced both when you discovered that they cost almost as much as the printer itself. It\\u2019s also known as the \\u201crazor and blades\\u201d model because that\\u2019s where it first drew attention, thanks to King Camp Gillette. Attract people with a cheap razor, then repeatedly charge them for expensive replacement blades. As Tim Harford explains, it\\u2019s an idea which has been remarkably influential.

Producer: Ben Crighton\\nEditors: Richard Knight and Richard Vadon

(Image: Razor, Credit: Shutterstock)

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