Transparency of retail energy pricing: Evidence from the us natural gas industry

Chi-Keung WOO, Jay Zarnikau*, Ira Horowitz, Alice Shiu

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)

Abstract

We test and cannot reject the hypothesis that retail pricing of natural gas is transparent for commercial and residential customers served by regulated local distribution companies in the United States. The periods of adjustment to a wholesale price change are 1.54months for the commercial price and 1.69months for the residential price. These findings support the view that regulated local distribution companies quickly adjust retail prices to fully capture any change in the wholesale natural gas price.

Original languageEnglish
Pages (from-to)300-308
Number of pages9
JournalManagerial and Decision Economics
Volume35
Issue number4
DOIs
Publication statusPublished - Jun 2014

Scopus Subject Areas

  • Business and International Management
  • Strategy and Management
  • Management Science and Operations Research
  • Management of Technology and Innovation

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