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Replication data for: Power to Choose? An Analysis of Consumer Inertia in the Residential Electricity Market

Version
1
Resource Type
Dataset
Creator
  • Hortaçsu, Ali
  • Madanizadeh, Seyed Ali
  • Puller, Steven L.
Publication Date
2017-11-01
Description
  • Abstract

    Many jurisdictions around the world have deregulated utilities and opened retail markets to competition. However, inertial decision making can diminish consumer benefits of retail competition. Using household-level data from the Texas residential electricity market, we document evidence of consumer inertia. We estimate an econometric model of retail choice to measure two sources of inertia: search frictions/inattention and a brand advantage that consumers afford the incumbent. We find that households rarely search for alternative retailers, and when they do search, households attach a brand advantage to the incumbent. Counterfactual experiments show that low-cost information interventions can notably increase consumer surplus.
Availability
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Relations
  • Is supplement to
    DOI: 10.1257/pol.20150235 (Text)
Publications
  • Hortaçsu, Ali, Seyed Ali Madanizadeh, and Steven L. Puller. “Power to Choose? An Analysis of Consumer Inertia in the Residential Electricity Market.” American Economic Journal: Economic Policy 9, no. 4 (November 2017): 192–226. https://doi.org/10.1257/pol.20150235.
    • ID: 10.1257/pol.20150235 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-13

Hortaçsu, Ali; Madanizadeh, Seyed Ali; Puller, Steven L. (2017): Replication data for: Power to Choose? An Analysis of Consumer Inertia in the Residential Electricity Market. Version: 1. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset. https://doi.org/10.3886/E114647V1