Consumer choice and competition policy: A study of UK energy markets

Monica Giulietti, Catherine Waddams Price, Michael Waterson

Research output: Contribution to journalArticlepeer-review

96 Citations (Scopus)

Abstract

Consumer choice is increasingly recognised as a crucial factor in competition policy. To illustrate the implications of such choice we present an investment model of the switching choice in the UK residential natural gas market and examine responses to a specially commissioned survey of nearly seven hundred consumers, identifying search and switching costs. Through an assessment of the savings which consumers say they require to switch supplier, together with an evaluation of consumer switching behaviour, we deduce that the incumbent retained considerable market power, suggesting that some continued regulation may be necessary.
Original languageEnglish
Pages (from-to)949-968
Number of pages20
JournalThe Economic Journal
Volume115
Issue number506
DOIs
Publication statusPublished - 2005

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