Which dynamic pricing rule is most preferred by consumers?—Application of choice experiment

Yumi Yoshida, Kenta Tanaka, Shunsuke Managi

Research output: Contribution to journalArticlepeer-review

10 Citations (Scopus)

Abstract

This study investigates consumers’ preference for dynamic pricing rules using a choice experiment. Among alternative electricity pricing rules, time of use (TOU) is most preferred by consumers, and our estimation results show that TOU has the highest value of WTP among pricing rules. Furthermore, consumers’ characteristics affect their choice of a pricing rule. Our results show that risk preference in particular affects the choice probability of each pricing rule.

Original languageEnglish
Article number4
JournalJournal of Economic Structures
Volume6
Issue number1
DOIs
Publication statusPublished - Dec 1 2017

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics
  • Economics, Econometrics and Finance (miscellaneous)

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