infonet-economy

For former monopolies, the liberalization of European utility markets leads to a drastically changed competitive environment. Multi?utility, i.e. the bundling of various utility services, is often seen as a strategic response to these changes. However, consumer preferences and attitudes towards such Multi?Utility?Bundles are widely unknown. Using conjoint analysis, this paper evaluates potential benefits of such a strategy from a consumers' perspective and draws strategic implications for utility providers. Our results show that under current market conditions, multi?utility favors established providers as it creates entry barriers which will be hard to circumvent by new competitors.