Explaining “Moral Hazard” to Salespeople

The Verizon letter arrived at home, exhorting us to “Renew now and save $100 on a new phone.”

Mrs. Big Picture was in no hurry to upgrade. She had been dragging her feet replacing her purple Motorola Razor (really), which she actually liked. I, on the other hand, was hating my aging Blackberry.

But during some errands Sunday, we ended up near a Verizon store. We each got the iPhone 4, which I am happy to report actually allows you to make telephone calls. I took the bigger data plan, and the insurance, covering “lost, broken, stolen, cracked, wet” damage to the glass beauty.

Insurance is something I almost never buy, but the replacement price of the iPhone, combined with the number of cracked screens I have already seen made it imperative.

The missus found a case the exact same shade as her purple Moto-Razor. I didn’t see anything I liked, and knew I would find something fun online.  That is when one of the sales people told me I should really get a case “to protect the phone.”

I tossed the phone up and caught it, then (half-jokingly) said: “I don’t need a case, I have insurance.”

She was absolutely aghast.

I smiled and said to her: “Now you understand Moral hazard.

I don’t think she got it . . .

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PS:  This is the case I ordered, which I fully expect will help me in the fast corners . . .

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