Price framing for consumers in the telecom sector

Framing EffectandTelecommunications

Intervention Description

In the United Kingdom, although it is required that phone companies communicate the cost of calls to consumers, the manner in which they do this is not regulated and is often not convenient for consumers. Ofcom, a communications regulator, sought to understand which was the best way to communicate call prices to consumers. Some of the approaches that were attempted to increase consumer understanding were pre-call announcements (where the price of the call was given to the caller), pre-call announcements (where the maximum possible price that the call might cost was given to the caller) call prices on monthly bills, and telephone short-codes. The intervention that increased consumer welfare the most was the one which included a pre-call announcement with the price given to the consumer.