Inattention vs switching costs: An analysis of consumers' inaction in choosing a water tariff

• Published in: IDEAS Working Paper Series from RePEc
• Main Authors: Heiss, Florian, Ornaghi, Carmine, Tonin, Mirco
• Format: Paper
• Language: English
• Published: St. Louis Federal Reserve Bank of St. Louis 01.01.2021
• Subjects: Cost control; Utility rates

This paper studies consumers' choice between two different water tariffs. We document a large inaction in a novel setting where customers face a binary decision and receive simple, detailed and personalized information about the financial savings they would obtain if they were to switch water t...