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Neither the cellphone companies nor their customers, as it turns out, always act in the rational way that economists might predict. Consumers often put immediate gratification and the avoidance of unpleasant surprises above their long-term interests. The companies, meanwhile, are trying to meet the sometimes irrational expectations of investors, who want growth without too much nasty volatility, even if their profits suffer.

 

Submitted: Nov 15, 2009    Views: 82    Comments: 0    Likes: 1   


View Article: http://www.nytimes.com/2009/11/15/business/15price.html


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