The Effect of Information Provision on Stated and Revealed Preferences:A Field Experiment on the Choice of Power Tariffs Before and After Japanese Retail Electricity Liberalization

Takunori Ishihara and Takanori Ida

Discussion papers from Graduate School of Economics , Kyoto University

Abstract: This paper examines differences in attitudes towards electricity fee plans when information is provided on electricity bills based on past electricity consumption. We conducted randomized controlled trial stated preference (SP) and revealed preference (RP) experiments on the choice of electricity rates before and after liberalization. In the SP experiment, we measured participants' valuations of their electricity pricing plans. We found that providing information about the participants' benefit from switching diminished the tendency towards overconfidence. The valuation decreases substantially, when information is provided showing that a loss will be incurred from switching. The results of the RP and SP experiments differ. We found that the selection was not changed in the RP experiment, even when providing information that a loss would be incurred.

Keywords: Randomized controlled trial (RCT); Stated preference; Revealed preference; Information provision; Power tariff; Overconfidence. (search for similar items in EconPapers)
JEL-codes: C93 D91 Q49 (search for similar items in EconPapers)
Pages: 49
Date: 2019-10
New Economics Papers: this item is included in nep-dcm, nep-ene and nep-exp
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Journal Article: The Effect of Information Provision on Stated and Revealed Preferences: A Field Experiment on the Choice of Power Tariffs Before and After Japanese Retail Electricity Liberalization (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:kue:epaper:e-19-006

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