Switching Energy Suppliers: It’s Not All About the Money

David Deller; Monica Giulietti; Graham Loomes; Catherine Waddams Price; Ana Moniche Bermejo; Joo Young Jeon

Switching Energy Suppliers: It’s Not All About the Money

David Deller, Monica Giulietti, Graham Loomes, Catherine Waddams Price, Ana Moniche Bermejo, Joo Young Jeon

Research output: Working paper

Abstract

Liberalised retail energy markets present an apparent puzzle: when offered the chance to buy a homogeneous product at a lower price, many consumers appear to leave ‘money on the table’. We observe the decisions made by over 7,000 consumers in a collective switching exercise and find that seemingly suboptimal consumer behaviour may be understood better if a sufficiently rich range of non-monetary ‘switching costs’ are identified. We discuss some policy implications for the expectations of consumer response in designing and regulating markets.

Original language	English
Publisher	Centre for Competition Policy
Number of pages	26
Publication status	Published - 21 Aug 2017

Publication series

Name	CCP Working Papers
No.	17-5

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

http://competitionpolicy.ac.uk/documents/8158338/17199160/CCP+WP+17-5+complete.pdf/fdaaed88-56e5-44f9-98db-6cf161bfb0d4

CCP Centre for Competition Policy Phase 2 (2009-14)
Hviid, M., Akman, P., Davies, S., Hargreaves-Heap, S., Harker, M., Kassim, H., Lyons, B., Stephan, A., Sugden, R., Waddams, C., Wadlow, C., Zizzo, D., Allen-Rogers, D., Allen-Rogers, D. & Allen-Rogers, D.
Economic and Social Research Council
1/09/09 → 30/11/14
Project: Research

Cite this

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abstract = "Liberalised retail energy markets present an apparent puzzle: when offered the chance to buy a homogeneous product at a lower price, many consumers appear to leave {\textquoteleft}money on the table{\textquoteright}. We observe the decisions made by over 7,000 consumers in a collective switching exercise and find that seemingly suboptimal consumer behaviour may be understood better if a sufficiently rich range of non-monetary {\textquoteleft}switching costs{\textquoteright} are identified. We discuss some policy implications for the expectations of consumer response in designing and regulating markets. ",

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AU - Deller, David

AU - Giulietti, Monica

AU - Loomes, Graham

AU - Waddams Price, Catherine

AU - Moniche Bermejo, Ana

AU - Jeon, Joo Young

PY - 2017/8/21

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N2 - Liberalised retail energy markets present an apparent puzzle: when offered the chance to buy a homogeneous product at a lower price, many consumers appear to leave ‘money on the table’. We observe the decisions made by over 7,000 consumers in a collective switching exercise and find that seemingly suboptimal consumer behaviour may be understood better if a sufficiently rich range of non-monetary ‘switching costs’ are identified. We discuss some policy implications for the expectations of consumer response in designing and regulating markets.

AB - Liberalised retail energy markets present an apparent puzzle: when offered the chance to buy a homogeneous product at a lower price, many consumers appear to leave ‘money on the table’. We observe the decisions made by over 7,000 consumers in a collective switching exercise and find that seemingly suboptimal consumer behaviour may be understood better if a sufficiently rich range of non-monetary ‘switching costs’ are identified. We discuss some policy implications for the expectations of consumer response in designing and regulating markets.

M3 - Working paper

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BT - Switching Energy Suppliers: It’s Not All About the Money

PB - Centre for Competition Policy

ER -

Switching Energy Suppliers: It’s Not All About the Money

Abstract

Publication series

UN SDGs

Access to Document

Projects

CCP Centre for Competition Policy Phase 2 (2009-14)

Cite this