Consumer inertia and firm incumbency in liberalised retail electricity markets: an empirical investigation
Massimo Dragotto (),
Marco Magnani () and
Paola Valbonesi ()
Additional contact information
Massimo Dragotto: Dept. of Economics and Management, University of Padova, Italy
Marco Magnani: Dept. of Economics and Management, University of Padova, Italy and Italian Regulatory Authority for Energy, Network and the Environment (ARERA)
No 277, "Marco Fanno" Working Papers from Dipartimento di Scienze Economiche "Marco Fanno"
By exploiting an original 4-year dataset on the Italian retail electricity market, we investigate the relationship between firm incumbency â€” measured by market concentration at the regional level â€” and consumer inertia â€” identified by the yearly percentage of consumers switching providers and/or contract, both from the regulated to the free market and within the free market. Our main results show that i) regions recording stronger firm incumbency exhibit larger consumer inertia in leaving the regulated market, this effect being reinforced by the number of active free market retailers; ii) switching by consumers who already are in the free market is, instead, positively affected by firm incumbency. In light of these results, we provide prescriptions for policymakers targeting the migration of consumers towards free-market contracts and, consequently, full energy market liberalisation.
Keywords: Electricity Retail Markets; Liberalisation in Electricity Markets; Incumbency; Consumer Behaviour (search for similar items in EconPapers)
JEL-codes: D12 L11 L98 Q48 (search for similar items in EconPapers)
Pages: 35 pages
New Economics Papers: this item is included in nep-com, nep-ene, nep-eur, nep-ind and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pad:wpaper:0277
Access Statistics for this paper
More papers in "Marco Fanno" Working Papers from Dipartimento di Scienze Economiche "Marco Fanno" Contact information at EDIRC.
Bibliographic data for series maintained by Raffaele Dei Campielisi ().