Skip to main content
Article thumbnail
Location of Repository

Pricing behaviour under competition in the UK electricity supply industry

By Michael Waterson, Monica Giulietti and Jesus Otero


This paper investigates the evolution of electricity prices for domestic customers in the UK following the introduction of competition. The empirical analysis is based on a panel data set containing detailed information about electricity supply prices over the period 1999 to 2006. The analysis aims to test theoretical hypotheses about the nature of consumers’ switching and search costs. The econometric analysis of persistence and price dispersion provides only\ud limited support for the view that the market is becoming more competitive and also indicates that there remain significant potential benefits to consumers from searching alternative suppliers

Topics: HB
Publisher: University of Warwick. Dept. of Economics
Year: 2007
OAI identifier:

Suggested articles


  1. (1999). A comparative study of unit root tests with panel data and a new simple test. doi
  2. (1980). A model of sales.
  3. (1996). A panel project on purchasing power parity: Mean reversion within and between countries. doi
  4. (2007). A simple panel unit root test in the presence of cross section dependence. doi
  5. (2006). An experimental study of price dispersion. doi
  6. (2004). Bootstrap unit root tests in panels with cross-sectional dependency. doi
  7. (2005). Consumer choice and competition policy: A study of UK energy markets. doi
  8. (2002). Does the internet make markets more competitive: Evidence from the life insurance industry. doi
  9. (2004). Domestic competitive market review,
  10. (2003). Domestic Gas and Electricity Supply Competition: Recent Developments.
  11. (2005). Dual fuel competition in British energy retail markets.
  12. (1983). Equilibrium price dispersion. doi
  13. (1999). Estimating dynamic panel data models: a guide for macroeconomists. doi
  14. (2001). Information gatekeepers on the internet and the competitiveness of homogeneous product markets. doi
  15. (2005). Lessons about markets from the Internet. doi
  16. (2005). Market integration and convergence to the law of one price: Evidence from the European car market. doi
  17. (2006). Maximum likelihood estimation of search costs. doi
  18. (2001). Mean reversion of inflation rates: Evidence from 13 OECD countries. doi
  19. (1989). Oligopolistic pricing with sequential consumer search.American doi
  20. (2004). Price dispersion in the small and in the large: evidence from an internet price comparison site. doi
  21. (2002). Price level convergence among United States cities: Lessons for the European Central Bank. doi
  22. (2000). Recent developments in bootstrapping time series. doi
  23. (2003). Shortfalls of panel unit root testing. doi
  24. (2004). Strategic pricing and the number of firms. doi
  25. (2006). Switching as a diffusion process: Evidence from the UK residential gas market.
  26. (2006). Testing for stationarity in heterogeneous panel data in the presence of cross section dependence. Warwick Economics Research Papers Series 758, doi
  27. (2000). Testing for stationarity in heterogeneous panel data. doi
  28. (2003). Testing for unit roots in heterogeneous panel. doi
  29. (1992). Testing the null hypothesis of stationarity against the alternative of a unit root. doi
  30. (1989). The jackknife and the bootstrap for general stationary observations. doi
  31. (1998). Unit Roots, Cointegration, and Structural Change. doi
  32. (2006). Using price distributions to estimate search costs. doi

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.