BEGIN:VCALENDAR
VERSION:2.0
PRODID:-//UM//UM*Events//EN
CALSCALE:GREGORIAN
BEGIN:VTIMEZONE
TZID:America/Detroit
TZURL:http://tzurl.org/zoneinfo/America/Detroit
X-LIC-LOCATION:America/Detroit
BEGIN:DAYLIGHT
TZOFFSETFROM:-0500
TZOFFSETTO:-0400
TZNAME:EDT
DTSTART:20070311T020000
RRULE:FREQ=YEARLY;BYMONTH=3;BYDAY=2SU
END:DAYLIGHT
BEGIN:STANDARD
TZOFFSETFROM:-0400
TZOFFSETTO:-0500
TZNAME:EST
DTSTART:20071104T020000
RRULE:FREQ=YEARLY;BYMONTH=11;BYDAY=1SU
END:STANDARD
END:VTIMEZONE
BEGIN:VEVENT
DTSTAMP:20261012T110800
DTSTART;TZID=America/Detroit:20261211T100000
DTEND;TZID=America/Detroit:20261211T112000
SUMMARY:Workshop / Seminar:Optimal Second-best Menu Design: Evidence from Residential Electricity Plans
DESCRIPTION:Utilities increasingly sell electricity using complex menus of time-constant and time-varying price schedules. We study how to design such a menu to maximize social welfare in a second-best environment where the marginal private and external costs of generating electricity vary over time\, institutional constraints prevent mandating time-varying pricing\, and consumer behavior is distorted by frictions. We develop a model of plan choice\, consumption\, and intertemporal substitution with time-varying marginal social costs\, and estimate it using administrative data from a large utility. We provide evidence of substantial intertemporal substitution in response to time-varying price incentives\, and selection across plans based on multidimensional heterogeneity. While the current menu's time-varying plans substantially shift consumption from high-price to low-price hours\, we find that they reduce social welfare. This loss is mitigated by information frictions. We show how to redesign the menu to simultaneously improve outcomes for consumers\, the utility\, and the environment.
UID:151853-21912272@events.umich.edu
URL:https://events.umich.edu/event/151853
CLASS:PUBLIC
STATUS:CONFIRMED
CATEGORIES:Economics,Industrial Organization,seminar
LOCATION:North Quad - 4300
CONTACT:
END:VEVENT
END:VCALENDAR