osewalrus (osewalrus) wrote,

How Is A Blackberry Like A Prescription Drug? Third Party Payers Warp Prices In Both Markets.

In my most recent blog post, the fact that I totally HATED my Omnia and paid for an "unsubsidized" model prompts me to examine mobile handset prices. I conclude that the existing third party payer dynamic has the same impact on cell phone prices as it does for prescription drug coverage: it makes it completely irrational. Alas, because I do not have access to proprietary data from carriers, this is just an intuition rather than empirically supported. But the FCC can resolve the question by demanding this information -- and should. Because if I'm right, ending handset exclusivity and the cell phone "subsidy" should *lower* prices overall.

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