Abstract: The projection bias model frame is introduced to consumer equilibrium in order to elaborate how people fail to maximize utility by the projection bias when they consume service durable goods By the experiment and field survey of how the experience of Internet influences the willingness to pay in next year, it is found that people’s cognition have significant changes after they’ve experienced the Internet Someone who has never used the Internet would underestimate the utility of broadband for the next year based on his current cognition because of the projection bias, resulting in his willingness to pay is lower obviously than someone who has experienced the Internet

Key words: projection bias, information consumption, willingness to pay, consumer equilibrium