大象传媒

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 鈥渟witching costs鈥�. If you鈥檝e 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鈥檚 also known as the 鈥渞azor and blades鈥� model because that鈥檚 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鈥檚 an idea which has been remarkably influential.

Producer: Ben Crighton
Editors: Richard Knight and Richard Vadon

(Image: Razor, Credit: Shutterstock)