Competitive pressures have often led to inaccuracy in width measurement. Here's how it works: Suppose you are in the market for a high performance 700 x 25 tire; you might reasonably investigate catalogues and advertisements to try to find the lightest 700-25 available. If the Pepsi Tire Company and the Coke Tire Company had tires of equal quality and technology, but the Pepsi 700-25 was actually a 700-24 marked as a 25, the Pepsi tire would be lighter than the accurately-marked Coke 700-25. This would put them at a competitive advantage. In self defense, Coke would retaliate by marketing an even lighter 700-23 labeled as a 700-25.
This scenario prevailed throughout the '70's and '80's. The situation got so out-of-hand that cooler heads have prevailed, and there is a strong (but not universal) trend toward accurate width measurements."
http://www.sheldonbrown.com/tire_sizing.html#dishonest
"Dishonesty in Sizing
Competitive pressures have often led to inaccuracy in width measurement. Here's how it works: Suppose you are in the market for a high performance 700 x 25 tire; you might reasonably investigate catalogues and advertisements to try to find the lightest 700-25 available. If the Pepsi Tire Company and the Coke Tire Company had tires of equal quality and technology, but the Pepsi 700-25 was actually a 700-24 marked as a 25, the Pepsi tire would be lighter than the accurately-marked Coke 700-25. This would put them at a competitive advantage. In self defense, Coke would retaliate by marketing an even lighter 700-23 labeled as a 700-25.
This scenario prevailed throughout the '70's and '80's. The situation got so out-of-hand that cooler heads have prevailed, and there is a strong (but not universal) trend toward accurate width measurements."