Retail electricity competition

Paul Joskow*, Jean Tirole

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

77 Scopus citations

Abstract

We analyze a number of unstudied aspects of retail electricity competition. We first explore the implications of load profiling of consumers whose traditional meters do not permit the measurement of their real-time consumption. The combination of retail competition and load profiling does not yield the second-best prices given the non-price-responsiveness of retail consumers. We then examine the incentives that electricity retailers have to install each of two types of advanced metering equipment. Finally, we consider the implications of physical limitations on the ability of system operators to cut off individual consumers relying instead on "zonal" rationing of large groups of individual consumers

Original languageEnglish (US)
Pages (from-to)799-815
Number of pages17
JournalRAND Journal of Economics
Volume37
Issue number4
DOIs
StatePublished - 2006
Externally publishedYes

ASJC Scopus subject areas

  • Economics and Econometrics

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