Modeling consumer opinions towards dynamic pricing: An agent-based approach

Anna Kowalska-Pyzalska, Katarzyna Maciejowska (), Katarzyna Sznajd-Weron and Rafał Weron

No HSC/14/06, HSC Research Reports from Hugo Steinhaus Center, Wroclaw University of Science and Technology

Abstract: Using an agent-based modeling approach we show how personal attributes, like conformity or indifference, impact opinions of individual electricity consumers regarding innovative dynamic tariff programs. We also examine the influence of advertising, discomfort of usage and the expectations of financial savings on opinion dynamics. Our main finding is that currently the adoption, understood as a positive opinion or attitude toward the innovation, of dynamic electricity tariffs is virtually impossible due to the high level of indifference in today’s societies. However, if in the future the indifference level is reduced, e.g., through educational programs that would make the customers more engaged in the topic, factors like tariff pricing schemes and intensity of advertising will became the focal point.

Keywords: Dynamic pricing; Demand response; Opinion formation; Agent-based model (search for similar items in EconPapers)
JEL-codes: C63 O33 Q48 Q55 (search for similar items in EconPapers)
Pages: 7 pages
Date: 2014-04-30
New Economics Papers: this item is included in nep-cmp, nep-ene and nep-mkt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published as A. Kowalska-Pyzalska, K. Maciejowska, K. Sznajd-Weron, R.Weron (2014) Modeling consumer opinions towards dynamic pricing: An agent-based approach, IEEE Conference Proceedings, 11th International Conference on the European Energy Market (EEM'14), DOI 10.1109/EEM.2014.6861272.

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