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[MUSIC PLAYING] Well, the motivation for this research really came from three observations. The first one is that firms commonly offer consumers contracts with a free allowance of units followed by steep penalties for going over. So you think about a typical cell phone contract, now, theyre often unlimited talk and text. But until recently, youd have an allowance, say, of 500 included minutes, but pay $0.45 a minute if you go over. And now, you still might get an allowance of, say, 2 gigabytes of data a month and pay when you go over. But this isnt just cell phone contracts. It happens in a lot of places. Another example is your checking account. Typically, the transaction fee for swiping your debit card at Starbucks and getting a coffee is $0, that is, until you run out of money in your account. And then it would be $35, that transaction fee they call an overdraft fee for covering it when youre out of money. So thats the first observation. Theres commonly these contracts with fr
