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Figure 3From “A flat rate buys your customer’s worst month.”

The two plan-choice errors are not the same size

Over five months, up to 46.4% of one provider’s customers paid flat where usage was cheaper; at most 5.8% made the opposite error. Both are choices against the cheaper tariff, not properties of the meter.

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Figure 3The two plan-choice errors are not the same size

In one internet provider’s transaction records, up to 46.4% of customers showed a flat-rate bias over five months while at most 5.8% showed the opposite pay-per-use bias.20%40%60%80%100%Flat-rate bias46.4%Pay-per-use bias5.8%Customers showing the bias, up to (%)

Source: Lambrecht & Skiera (2006), Journal of Marketing Research 43(2), p. 215, version of record (a circulating manuscript reads 46.6%; the typeset article reads 46.4%). One internet provider, consumer access, early-2000s transaction records.

PNG4:3, 1600 × 1200, with the title, the source line and the attribution set in the image isoglu-2026-a-flat-rate-buys-the-worst-month-fig03.png

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  • A LS06-C6 Flat-rate bias is the regular one and pay-per-use bias the rare one, in the authors' own words: over five months, "46.4% of consumers have a flat-rate bias, and only up to" "5.8% of consumers have a pay-per-use bias" (p. 215; 48.1% on Tariff 2 under Criterion 1)Lambrecht & Skiera (2006), Journal of Marketing Research 43(2), 212–223 · VoR held

Grades: A, verified against the printed page of the primary source · B, primary source, text layer only · C, authoritative secondary · D, reported.

From the essay

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APA 7

Isoglu, S. (2026). The two plan-choice errors are not the same size [Figure]. isoglu.com. https://isoglu.com/insights/exhibits/isoglu-2026-a-flat-rate-buys-the-worst-month-fig03/

BibTeX
@misc{isoglu-2026-a-flat-rate-buys-the-worst-month-fig03,
  author = {Isoglu, Sinan},
  title = {{The two plan-choice errors are not the same size}},
  year = {2026},
  howpublished = {Figure 3, isoglu.com},
  url = {https://isoglu.com/insights/exhibits/isoglu-2026-a-flat-rate-buys-the-worst-month-fig03/},
  note = {From the essay {A flat rate buys your customer’s worst month.}}
}
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<figure>
  <a href="https://isoglu.com/insights/exhibits/isoglu-2026-a-flat-rate-buys-the-worst-month-fig03/">
    <img src="https://isoglu.com/social/isoglu-2026-a-flat-rate-buys-the-worst-month-fig03.png" alt="Figure 3: The two plan-choice errors are not the same size" width="3200" height="2400">
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  <figcaption>Figure 3: The two plan-choice errors are not the same size. Source: Lambrecht &amp; Skiera (2006), Journal of Marketing Research 43(2), p. 215, version of record (a circulating manuscript reads 46.6%; the typeset article reads 46.4%). One internet provider, consumer access, early-2000s transaction records. <a href="https://isoglu.com/insights/exhibits/isoglu-2026-a-flat-rate-buys-the-worst-month-fig03/">View exhibit</a>.</figcaption>
</figure>

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