Peer Pressure

One of the top priorities of many last week was to seek out a cell phone in order to be able to easily call America, other PPPlers, or both. As a result, many discussions centered on which calling plan to purchase. We already had been advised that prepaid cell phones were the best bet, but several alternatives with different rates still existed. I sat back while others diligently sought ought the best value, partly because buying a phone was not an immediate priority for me, partly because it was easier to let others do the work for me (See: Free Rider Problem), and also partly because I recognized that waiting would allow me to better benefit from the network effect, which for me has more impact on the true cost of my plan than the explicit rates. Sure enough, soon many had decided on a particular network and I happily bought the same plan and a cheap phone, smugly confident that I was getting the best deal possible. Sometimes simply doing what everyone else does is the most economically rational thing to do, despite what Momma says.