On the claimed prices of cellphones

Cellular carriers claim that their contracts offset heavy subsidies on handsets. They claim they'd love to sell phones contract-free at retail–you're just not interested. But there's a problem with this story: these "full price" handsets are grossly overpriced, suggesting that they want consumers in the contract rat trap after all. As hard as it is to prove, discount handsets often reveal the absurdity of list pricing. For example, Motorola's Renew, free with a 2-year agreement, is listed as $160 full-price at T-Mobile. Amazon has it for $70 unlocked, however, and Manufacturer Motorola charges just $50.