The impact of the decision environment on consumer choice of mobile service plans: An experimental examination

摘要

Determining the most suitable mobile communications network and service plan can be daunting for many consumers. We consider whether individuals with lower numeracy need more assistance than other consumers when making choices amongst hypothetical mobile service tariffs and whether changes to the environment will improve consumers' decisions. We find that people with poor numeracy are less likely to choose the lowest cost plan and overpay for their mobile services. We also find that the regulatory initiatives currently available to help consumers' decisions should be customized to address the interests of low numerate and other consumers.