Work package 3: Analysis of price elasticity
Price elasticity describes the correlation between price changes and shifts in demand. TRANSPOSE locates this ratio for the products „electricity“ and „electricity-saving household appliances“. Under certain circumstances, prices as well as price changes can have strong effects on the consumers' electricity-saving behavior. However, up to now, sufficient studies of price elasticity in this sector are not available. Thus, further research is definitely needed.
A notable problem while investigating consumers' buying behavior is that they tend to overestimate their ecological awareness. Too often the consumers' responses do not resemble the actual willingness to pay extra charges, for ecological reasons. This explains why virtually all previous studies met the problem that the research results for purchase decisions would not match real consumer behavior. Work package 3 develops and tests an experimental research design, which integrates the financial effects of one-time purchase decisions into the overall buying decision processes. This approach resembles an innovative empirical contribution to the analysis of price elasticity in the sector of power consumption.
| Coordination: | Prof. Doris Fuchs, Ph.D. (Universität Münster) |
| Team: | Ulrich Hamenstädt, M.A. (Universität Münster) |
| Contact: | Doris Fuchs |