information asymmetry


Verizon has started to assess and issue “report cards” on mobile apps that its customers are likely to use, according to the NYT. Sounds like a noble effort on Verizon’s part, but why is the carrier reviewing apps in the first place? After all, Verizon would benefit from apps using excess data, because that would result in higher cellphone bills for customers. David Samberg, a Verizon spokesman, said that it behooved the company to inform customers on how apps affect their smartphones because an app that behaves badly can detract from the entire customer experience. And dissatisfied customers might complain to the carrier, not the app maker.