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Title: Nonlinear pricing and tariff differentiation: evidence from the British electricity market
Authors: Davies, Stephen
Waddams Price, Catherine
Wilson, Chris M.
Keywords: Price discrimination
Two-part tariffs
Issue Date: 2014
Publisher: © International Association of Energy Economics (IAEE)
Citation: DAVIES, S., WADDAMS PRICE, C. and WILSON, C.M., 2014. Nonlinear pricing and tariff differentiation: evidence from the British electricity market. Energy Journal, 35 (1), pp.57-77.
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 tbeir tariff structures, resulting in market segmentation according to consumers' usage.
Description: This paper is Closed Access until February 2017. This paper is also a CCP Working Paper 12-2 and can be found at: http://competitionpolicy.ac.uk/publications/working-papers-2012
Sponsor: The financial support of the Economic and Social Research Council (ESRC) is gratefully acknowledged.
DOI: 10.5547/01956574.35.1.4
URI: https://dspace.lboro.ac.uk/2134/15289
Publisher Link: http://dx.doi.org/10.5547/01956574.35.1.4
ISSN: 0195-6574
Appears in Collections:Closed Access (Economics)

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