“κλοιῷ τέτριπται σάρκα τῷ σιδηρείῳ,
ὃν ὁ τροφεύς μοι περιτέθεικε χαλκεύσας.”
λύκος δ’ ἐπ’ αὐτῷ καγχάσας “ἐγὼ τοίνυν
χαίρειν κελεύω” φησί “τῇ τρυφῇ ταύτῃ,
δι’ ἣν σίδηρος τὸν ἐμὸν αὐχένα τρίψει.”

THE WOLF, THE DOG AND THE COLLAR 

Aesop’s Fables (Valerius Babrius, 100)

The Internet and modern computer technology promised to reduce the effects from consumer myopia arising from mental calculation costs. However, it is to note that the current cost of mobile permanence agreements in Spain, calculated as the foregone value of forsaking the right to change to the best mobile provider for 18 to 24 months, ranges from 216€ to 296€.

And given that smartphone Average Selling Prices (ASPs) are around 250€, the implicit interest rate of these permanence agreements may even surpass 100% in some cases. A really astonishing figure.

Therefore, and in accordance with other studies in the empirical literature about transaction costs on the e‑commerce industry (Do Lower Search Costs Reduce Prices and Price Dispersion?), very high search costs and the analysis paralysis resulting from them also exists in the mobile telecommunications industry, and are just as relevant today as they always have been.