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

Davies, Stephen, Waddams, Catherine and Wilson, Chris (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
Depositing User: Julie Frith
Date Deposited: 04 Feb 2013 11:24
Last Modified: 13 Mar 2019 10:30
URI: https://ueaeprints.uea.ac.uk/id/eprint/41064
DOI:

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