Paper Number

1095

Abstract

Electric vehicle users need to subscribe to an Electric Mobility Platform Service provider to gain access to public charging networks. Consequently, consumers need to form beliefs about their future demand for the (charging) service in order to choose a tariff that maximizes their surplus. Using a unique dataset from a large Western European Electric Mobility Platform Service provider, we show that a significant share of customers conducts systematic tariff-choice errors. We find that customers of two-part tariffs are more likely to choose a non-optimal tariff than customers of a pay-per-use tariff. Additionally, the likelihood of a non-optimal pay-per-use tariff choice depends on the user’s type of plug-in electric vehicle. We explain the non-optimal tariff choices by cognitive biases related to reference dependence and overconfidence. We further outline our next steps to better understand non-optimal choice behavior in the electric vehicle services market and provide implications for managers and policymakers.

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