Inattentive consumers in markets for services

Stefania Sitzia, Jiwei Zheng, Daniel Zizzo

Research output: Contribution to journalArticlepeer-review

25 Citations (Scopus)
17 Downloads (Pure)


In an experiment on markets for services, we find that consumers are likely
to stick to default tariffs and achieve suboptimal outcomes. We find that inattention to the task of choosing a better tariff is likely to be a substantial problem in addition to any task and tariff complexity effect. The institutional setup on which we primarily model our experiment is the UK electricity and gas markets, and our conclusion is that the new measures by the UK regulator Ofgem to improve consumer outcomes are likely to be of limited impact.
Original languageEnglish
Pages (from-to)307-332
Number of pages26
JournalTheory and Decision
Issue number2
Early online date12 Sep 2014
Publication statusPublished - Sep 2015


  • Complexity
  • Inattention
  • Defaults
  • Services
  • Energy

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