A new study co-authored by Stanford economists Liran Einav and Neale Mahoney examines how much companies gain when customers aren’t paying attention or, if they are paying attention, don’t do anything about those automatic $12.99-a-month type of memberships they could do without. Einav and Mahoney find that business revenues are from 14 percent to more than 200 percent higher than they would be if consumers were more proactive about managing their unwanted accounts. The study comes as companies are relying more on automatic renewals to sell everything from movie streaming…
Read MoreGauging the ‘subscription economy’ boon to companies
