It seems like whenever consumers have an ostensible choice in something, but do not pay the full price for the thing they're buying, they end up not acting in t

It seems like whenever consumers have an ostensible choice in something, but do not pay the full price for the thing they're buying, they end up not acting in their best interest because the costs are distorted. Whether it's health insurance, airplane tickets, or cell phones. In this case, for instance, Apple can say an iPhone costs $600, because, to a consumer, it costs $200. The amount that Apple gets for the device could just have easily been $500 or $800 because, well, that's not what you're paying when you buy one.