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Pricing behaviour under competition in the UK electricity supply industry
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Waterson, Michael, 1950-, Giulietti, Monica and Otero, Jesus (2007) Pricing behaviour under competition in the UK electricity supply industry. Working Paper. Coventry: University of Warwick. Dept. of Economics. (Warwick economic research papers.
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Abstract
This paper investigates the evolution of electricity prices for domestic customers in the UK following the introduction of competition. The empirical analysis is based on a panel data set containing detailed information about electricity supply prices over the period 1999 to 2006. The analysis aims to test theoretical hypotheses about the nature of consumers’ switching and search costs. The econometric analysis of persistence and price dispersion provides only limited support for the view that the market is becoming more competitive and also indicates that there remain significant potential benefits to consumers from searching alternative suppliers.
| Item Type: | Working or Discussion Paper (Working Paper) |
|---|---|
| Subjects: | H Social Sciences > HB Economic Theory |
| Divisions: | Faculty of Social Sciences > Economics |
| Library of Congress Subject Headings (LCSH): | Electric utilities -- Great Britain -- Rates, Time series analysis |
| Series Name: | Warwick economic research papers |
| Publisher: | University of Warwick. Dept. of Economics |
| Place of Publication: | Coventry |
| Date: | 2007 |
| Number: | No.790 |
| Number of Pages: | 30 |
| Institution: | University of Warwick |
| Status: | Not Peer Reviewed |
| Access rights to Published version: | Open Access |
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| URI: | http://wrap.warwick.ac.uk/id/eprint/17 |
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