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BEHAVIOURAL ECONOMICS AND CUSTOMER COMPLAINTS
IN
COMMUNICATION MARKETS

A report prepared for the Australian Communications and Media Authority (ACMA) in connection with the public inquiry “Reconnecting the Customer”

by
Dr Patrick Xavier*
Adjunct Professor of Economics & Finance,
Curtin University Business School.

May 2011

* Dr Patrick Xavier BEc (Hons), M.A., M.Ec, PhD is Director of Info-Comm Strategies and Adjunct Professor of Economics, Curtin Business School, Curtin University of Technology, Australia. Dr Xavier has published widely and has had extensive experience as a consultant to national and international agencies on regulatory reform in the (tele)communications sector, including the OECD, ITU, World Bank and APEC. He was part of the OECD’s regulatory reform team that visited a range of countries to advise on regulatory reform in major industrialised and emergent economies. He has undertaken work in Hong Kong and in a range of developing countries, including Lao PDR, Romania, Armenia, Vietnam, Pakistan, Pacific Islands, Thailand, Bhutan and China. He can be contacted at: poxavier@gmail.com

Disclaimer. The views in this report are those of the author and do not necessarily reflect the views of the ACMA.
©

BEHAVIOURAL ECONOMICS AND CUSTOMER COMPLAINTS
IN
COMMUNICATION MARKETS

Executive summary 4

1. INTRODUCTION 10
1.1 Purpose of this report 10
1.2 Customer complaints in the telecommunications sector 11
1.3 Structure of report 16

2. INSIGHTS FROM BEHAVIOURAL ECONOMICS 17
2.1 Behavioural economics and behavioural ‘bias’ 17
2.2 Some criticisms of behavioural economics 23
2.3 Policy and regulatory implications of behavioural economics 24

3. DEMAND SIDE FOCUS 28

3.1 Information and consumer empowerment 28

3.2 Increasing complexity of telecommunications market

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