Nonlinear pricing and tariff differentiation: Evidence from the British electricity market

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Davies, Stephen, Waddams, Catherine and Wilson, Chris M. (2014) Nonlinear pricing and tariff differentiation: Evidence from the British electricity market. The Energy Journal, 35 (1). pp. 57-77.

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Abstract

Liberalisation of the British household electricity market, in which previously monopolised regional markets were exposed to large-scale entry, is used as a natural experiment on oligopolistic nonlinear pricing. Each oligopolist offered a single two-part electricity tariff, but inconsistent with current theory, the two-part tariffs were heterogeneous in ways that cannot be attributed to explanations such as asymmetric costs or variations in brand loyalty. Instead, the evidence suggests that firms deliberately differentiated their tariff structures, resulting in market segmentation according to consumers' usage.

Item Type:	Article
Uncontrolled Keywords:	price discrimination, two-part tariffs, segmentation, oligopoly, electricity,
Faculty \ School:	Faculty of Social Sciences > Norwich Business School Faculty of Social Sciences > School of Economics
UEA Research Groups:	Faculty of Social Sciences > Research Groups > Industrial Economics Faculty of Social Sciences > Research Centres > Centre for Competition Policy Faculty of Social Sciences > Research Groups > Responsible Business Regulation Group
Related URLs:	https://www.jstor.org/stable/24693818
Depositing User:	Julie Frith
Date Deposited:	04 Feb 2013 11:24
Last Modified:	30 Aug 2023 16:30
URI:	https://ueaeprints.uea.ac.uk/id/eprint/41064
DOI:	10.5547/01956574.35.1.4

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