Transparency of Retail Energy Pricing: Evidence from the US Natural Gas Industry
Article first published online: 8 MAY 2013
Copyright © 2013 John Wiley & Sons, Ltd.
Managerial and Decision Economics
Volume 35, Issue 4, pages 300–308, June 2014
How to Cite
Woo, C.-K., Zarnikau, J., Horowitz, I. and Shiu, A. (2014), Transparency of Retail Energy Pricing: Evidence from the US Natural Gas Industry. Manage. Decis. Econ., 35: 300–308. doi: 10.1002/mde.2616
- Issue published online: 8 MAY 2014
- Article first published online: 8 MAY 2013
- Manuscript Accepted: 25 MAR 2013
- Manuscript Received: 10 MAY 2012
- Manuscript Revised: 19 MAR 2012
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 1.54 months for the commercial price and 1.69 months 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. Copyright © 2013 John Wiley & Sons, Ltd.