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There has been considerable merger activity in EU energy markets in recent years. It could be argued that competition authorities should be required to take into account potential innovation effects of mergers. In the UK, regulators are now trying to achieve multiple objectives within the current framework. There is a danger that if markets are expected to deliver mutually incompatible objectives...
Summary We use data from a consumer survey to uncover factors deterring consumer switching in liberalised residential energy markets in The Netherlands. We find that actual or perceived switching costs represent an important barrier for switching energy suppliers. This enables incumbent firms to charge higher markups than entrants. We analyse the welfare consequences of switching costs in two scenarios,...
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