When talk is free: The effects of pricing plans on consumer demand
NEW YORK February 6, 2012 From banks to telecom providers, various industries are moving to pricing plans that offer a certain amount of "free" service. Bank customers are allowed a certain number of free ATM withdrawals each month, and cell phone users receive free minutes. These three-part plans — which also include a regular (usually monthly) access fee as well as a usage fee if the customer exceeds the free allotment — are replacing older two-part plans that charged an access fee and a usage price for every unit of consumption.
Recent studies show that consumers ...




