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Cato Daily Podcast

The Pink Tax and The War on Prices

May 14, 2024
Ryan Bourne, Editor of The War on Prices, discusses the misconception of the pink tax, gendered pricing disparities, impacts of legislation, consequences of gender product restrictions, and the role of the pink tax in conveying market information.
11:50

Episode guests

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Quick takeaways

  • The pink tax is often skewed by women's product choices with differing ingredients, influencing perceived price differentials.
  • Women's preference for unique product features influences price variations, reflecting discerning shopping habits and market responsiveness.

Deep dives

The Pink Tax Debate and Findings

The discussion delves into the concept of the pink tax, highlighting a study by the New York City Department of Consumer Affairs that identified women's products being around 7% more expensive on average than men's. However, further analysis by economists, commissioned by the FTC, revealed that when controlling for ingredients, women's products were only slightly higher priced. This finding suggested that women's product choices with different ingredients influenced the perceived price differential.

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