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Independent thesis Advanced level (professional degree), 20 credits / 30 HE creditsStudent thesis
Switching cost is the cost that arises when consumers who have purchased goods or services from one supplier switch to a competing supplier’s product. For a consumer, the switching cost creates reduced incentive to change supplier of a good or service. The purpose of this thesis is to examine the switching costs in the Swedish electricity market. The estimation of the switching cost is based on data about the electricity company’s market shares and fees to calculate switching costs. Electricity-trading companies included to calculate switching costs have been limited to the 15 largest companies based on their respective market share. Further limitations are that switching costs are calculated for apartment households with an average annual electricity consumption of 2 000 kWh and the electricity contracts are limited to fixed-price contracts with two periods, variable price contracts and assigned contracts. The results indicate that electricity-trading companies with larger market shares generally have higher prices and higher switching costs than electricity-trading companies with smaller market shares. The result in this thesis supports the result of previous studies on estimations of switching costs and switching costs in the Swedish electricity market can reach high values.
Place, publisher, year, edition, pages
2014. , 81 p.
Social Behaviour Law
Samhälls-, beteendevetenskap, juridik, Nationalekonomi, elmarknaden, civilekonom
IdentifiersURN: urn:nbn:se:ltu:diva-49934Local ID: 73d8d81e-38ae-47d2-bf5e-05586787014dOAI: oai:DiVA.org:ltu-49934DiVA: diva2:1023287
Subject / course
Student thesis, at least 30 credits
Business and Economics, master's level
Validerat; 20140901 (global_studentproject_submitter)2016-10-042016-10-04Bibliographically approved