Market liberalization : price dispersion, price discrimination and consumer search in the German electricity markets


Gugler, Klaus ; Heim, Sven ; Janssen, Maarten ; Liebensteiner, Mario


[img]
Preview
PDF
dp18042.pdf - Published

Download (4MB)

URL: https://ub-madoc.bib.uni-mannheim.de/47320
URN: urn:nbn:de:bsz:180-madoc-473202
Document Type: Working paper
Year of publication: 2018
The title of a journal, publication series: ZEW Discussion Papers
Volume: 18-042
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: D43 , D83 , L11 , L13 , Q40,
Keywords (English): Search , price dispersion , price discrimination , electricity
Abstract: We study how consumer search affects pricing in markets with incumbents and entrants using panel data on German electricity retail markets. Consumers observe the baseline price of the incumbent and decide whether or not to search. Incumbent providers can price discriminate between searching and loyal consumers. Empirically we show that local incumbents increase their baseline rate while entrants decrease their tariffs if consumer search increases. Moreover, the incumbent price discriminates more strongly in markets with more consumer search. Using a theoretical model, we show that these pricing patterns are consistent with the strategic interaction of profit-maximizing firms.

Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




+ Citation Example and Export

Gugler, Klaus ; Heim, Sven ; Janssen, Maarten ; Liebensteiner, Mario (2018) Market liberalization : price dispersion, price discrimination and consumer search in the German electricity markets. Open Access ZEW Discussion Papers Mannheim 18-042 [Working paper]
[img]
Preview


+ Search Authors in

+ Download Statistics

Downloads per month over past year

View more statistics



You have found an error? Please let us know about your desired correction here: E-Mail


Actions (login required)

Show item Show item