How U.S. cell phone companies price their services

This New York Times article explains a few of the drivers for the pricing models in the U.S., which is quite different from many European markets.

“The whole pricing thing is weird,” said Barry Nalebuff, an economics professor at the Yale School of Management. “You pay $60 to make your first phone call. Your next 1,000 minutes are free. Then the minute after that costs 35 cents.”

Via BoingBoing

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