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Citizens Advice says long-term customers overpay for mobile, broadband, insurance and mortgage deals.
Via Graham Watson
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Rescooped by Bruce Fellowes from Microeconomics: IB Economics |
Scoop.it!
Via Graham Watson
A very interesting - and I don't use 'very' often - competition policy article on how loyal customers are 'ripped off' by mobile, broadband, insurance and mortgage deals. This is one of the reasons why I always ensure that I don't automatically renew these deals.
It's a lovely example of how our 'default' settings can be manipulated by clever firms aware that, for many people, these tasks are seen as a 'chore' and who are able to exploit their unwillingness to change. This reflects inelastic demand as well as a lack of willingness to seek perfect information: there are plenty of sites allowing for easy price comparison and I'd advise everyone to use them, although even they have been accused of providing imperfect information.