Chapter

Cell Phones

Bar-Gill Oren

in Seduction by Contract

Published in print August 2012 | ISBN: 9780199663361
Published online September 2012 | e-ISBN: 9780191751660 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780199663361.003.0005
Cell Phones

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This chapter focuses on the failures of the cellular service market. It shows how carriers design their contracts in response to the systemic mistakes and misperceptions of their customers. In doing so, they impose welfare costs on consumers, reducing the net benefit that consumers derive from wireless service. The chapter focuses on three design features common to most cellular service contracts: three-part tariffs; lock-in clauses; and sheer complexity.

Keywords: cellular service market; market failures; cellular service contracts; consumer contracts; welfare costs; three-part tariffs; lock-in clauses; contract complexity

Chapter.  24172 words.  Illustrated.

Subjects: Company and Commercial Law

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