Testing the regulatory threat hypothesis: Evidence from Sweden

Petyo Bonev*, Matthieu Glachant, Magnus Söderberg

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Abstrakt

This study examines whether threat of stricter regulation influences the pricing behavior of firms. Using data on unregulated Swedish local district heating monopolists, we measure the threat level by the number of customer complaints about prices received by a national board. Exploiting a natural experiment, we find that firms reduce prices when customer complaints increase.

OriginalsprogEngelsk
Artikelnummer101182
TidsskriftResource and Energy Economics
Vol/bind62
Antal sider11
ISSN0928-7655
DOI
StatusUdgivet - nov. 2020

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