Switching Energy Suppliers: It’s Not All About the Money

David Deller, Monica Giulietti, Graham Loomes (), Catherine Waddams Price, Anna Moniche Bermejo and Joo Young Jeon
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Catherine Waddams Price: Centre for Competition Policy and Norwich Business School, University of East Anglia
Anna Moniche Bermejo: Universidad de Malaga
Joo Young Jeon: Department of Economics, University of Reading

No 2017-05, Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) from Centre for Competition Policy, University of East Anglia, Norwich, UK.

Abstract: Liberalised retail energy markets present an apparent puzzle: when offered the chance to buy a homogeneous product at a lower price, many consumers appear to leave ‘money on the table’. We observe the decisions made by over 7,000 consumers in a collective switching exercise and find that seemingly suboptimal consumer behaviour may be understood better if a sufficiently rich range of non-monetary ‘switching costs’ are identified. We discuss some policy implications for the expectations of consumer response in designing and regulating markets.

Keywords: retail energy market; switching suppliers; probit models; behavioural consumers (search for similar items in EconPapers)
JEL-codes: C25 C26 D12 D83 L94 L95 (search for similar items in EconPapers)
Date: 2017-10-01
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:uea:ueaccp:2017_05

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Juliette Hardman, Center for Competition Policy, University of East Anglia, Norwich Research Park, Norwich, NR4 7TJ, UK

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