Will consumers make optimum decisions towards phone plans?

There are more and more products and services are selling at a monthly payment rate on the market now. It is interesting to know how does consumers perceive such monthly rates. The following thesis focuses on consumers’ ability to calculate total monthly payments and consumers financial literacy. This thesis shows consumers have underestimated total price over the contract period, longer contracts increase the price gap between real price and estimated price. Thesis suggest government introduce regulation requiring companies show both monthly payments and total contract payment to help consumers to make the cheapest choice.