Price framing and consumer decision making
Can providing estimated annual bill improved choice outcomes?
The Economic and Social Research Institute (ESRI), in co-operation with the Commission for Energy Regulation (CER) aimed to understand how price framing affected consumer decision making in Ireland’s residential energy market. Information about energy plans were presented to experiment participants and they were asked to choose the plan with the lowest price. Those presented with a price framed as a discount as one of the options did not successfully choose the cheapest plan. Providing an estimated annual bill improved choice outcomes.