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Electricity Retailing in Norway

Abstract:
We analyze retailer and household behavior on the Norwegian electricity market, based on detailed information on prices and other market characteristics. We find that there exists a competitive market segment where a number of retailers compete fiercely for customers, with small margins on all products. However, we also find indications of monopolistic behavior, whereby retailers exploit the passivity of some of their customers. We discuss potential explanations for these results.

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Energy Specializations: Electricity – Local Distribution; Electricity – Markets and Prices ; Electricity – Policy and Regulation

JEL Codes:
D44 - Auctions
D42 - Market Structure, Pricing, and Design: Monopoly
E60 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General

Keywords: Electricity retailers, Households, Behavior, Norway

DOI: 10.5547/ISSN0195-6574-EJ-Vol31-No1-2


Published in Volume 31, Number 1 of The Quarterly Journal of the IAEE's Energy Economics Education Foundation.