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Customers' Choice Among Retail Energy Suppliers: The Willingness-to-Pay for Service Attributes

Author

Listed:
  • Andrew A. Goett
  • Kathleen Hudson
  • Kenneth E. Train

Abstract

We examine small/medium commercial and industrial customers' choices among energy suppliers in conjoint-type experiments. The distribution of customers' willingness to pay is estimated for more than 40 attributes of suppliers, including sign-up bonuses, amount and type of renewables, billing options, bundling with other services, reductions in voltage fluctuations, and charitable contributions. These estimates provide guidance for suppliers in designing service options and to economists in anticipating the services that will be offered in competitive retail energy markets.

Suggested Citation

  • Andrew A. Goett & Kathleen Hudson & Kenneth E. Train, 2000. "Customers' Choice Among Retail Energy Suppliers: The Willingness-to-Pay for Service Attributes," The Energy Journal, , vol. 21(4), pages 1-28, October.
    • Handle: RePEc:sae:enejou:v:21:y:2000:i:4:p:1-28
    DOI: 10.5547/ISSN0195-6574-EJ-Vol21-No4-1
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