From Airbnb to Solar: Toward a Transaction Cost Model of a Retail Electricity Distribution Platform

Kiesling, Lynne; Munger, Michael C.; Theisen, Alexander

doi:10.2139/ssrn.3229960

Cited by 4 publications

(5 citation statements)

References 55 publications

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“…They have also been regarded as socially cohesive communities connected by a local energy market (Lezama et al , 2019) and discussed in terms of community-based energy trading (Koirala et al , 2016). In terms of added value, customers get access to locally produced renewable energy (Kahrobaee et al , 2014) while the acceptance and adoption of distributed renewable energy can be increased because of the additional value streams created for prosumers (Kiesling et al , 2019). The research literature focuses primarily on market design and implementation, such as bilateral trading (Morstyn et al , 2019), broker-based markets (Chen and Su, 2019), consensus-based approaches (Sorin et al , 2018) and auction mechanisms (Paudel et al , 2019).…”

Section: Related Workmentioning

confidence: 99%

“…Amazon) and their growth has caught the attention of academics and the public at large. At the same time, platform businesses have become increasingly prominent within policy debates (Kiesling et al , 2019). This prompts the question of how and to what extent this potential could be leveraged in the energy sector to help drive the required transition to a low-carbon energy system.…”

Section: Introductionmentioning

confidence: 99%

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Green energy platform economics – understanding platformization and sustainabilization in the energy sector

Menzel

Teubner

2020

IJESM

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Purpose This paper aims to present a conceptual framework for the emerging field of green energy platform economics. Design/methodology/approach The authors develop a conceptual framework based on a careful review of the existing literature, and research into the current provider landscape and insights from academic and industry experts. The authors also examine the implications for the energy sector’s value chain and derive a research agenda based on those areas where research still needs to be pursued. Findings The framework combines the spatial characteristics of platform models (residential/mobile) with the different types of platform business model (B2C/C2C/C2Grid). Using this framework, the authors illustrate how green energy platforms can fundamentally disrupt the conventional electricity value chain by enabling prosumers to market their assets, creating new arenas for trading and collaboration, and by increasing transparency and competition in the sector. The authors also identify areas where more research is required, particularly empirical studies into energy forms other than electricity and analyses of currently underrepresented aspects such as user interfaces and social interactions. Social implications Green energy platforms have the potential to contribute meaningfully to the energy sector’s decarbonization, digitalization and decentralization, and hence to the deceleration of climate change. Originality/value This paper is among the first to provide a holistic perspective on platformization in the energy sector. It also offers a new perspective on platform economics in general that is based on the unique characteristics of energy as an economic good (intangibility, homogeneity, credence good).

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Section: Related Workmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Green energy platform economics – understanding platformization and sustainabilization in the energy sector

Menzel

Teubner

2020

IJESM

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“…The fall in transaction costs makes the integrated entity of a distribution company relatively more inefficient than alternatives such as the vertical disintegration of the distribution operator. Kiesling et al (2019, p. 34) argue that “as peer‐to‐peer transactions in energy capacity become more feasible, our results suggest that ownership of DER capacity will be driven less by one's expected intensity of use and more by relative price concerns and subjective preferences for energy self‐sufficiency or environmental attributes”.…”

Section: Reasons For Reconsidering the Regulation Of Utilitiesmentioning

confidence: 69%

“…Advances in the financial and technological dimensions require changes in the tariff model as well. These advances in technology create the possibility of transforming electricity distribution into a platform market rather than being an integrated entity (Kiesling, Munger, & Theisen, 2019). The change in electricity markets can be seen as similar to developments in other platform markets.…”

Section: Reasons For Reconsidering the Regulation Of Utilitiesmentioning

confidence: 99%

Hayekian complexity and the role of regulation in electricity markets

Oğuz

2020

Economic Affairs

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Utilities worldwide have followed the natural monopoly model for more than a century. This has started to change in recent decades. Electricity systems have become complex, as interactions between participants become multidimensional. This article examines the knowledge problem in an increasingly complex electricity system. I argue that increasing complexity in the electricity system necessitates reconsideration of the regulatory tariff model for utilities.

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“…For service providers, a digital platform enables them to reach an extensive, even global, customer base (Parker et al, 2016). Here, digital platforms essentially create new markets by reducing transaction costs that previously made many economic interactions inefficient and costly through traditional market intermediaries, such as retailers (e.g., Kiesling et al, 2019). At the same time, digital platforms now oversee many transaction‐related factors (e.g., screening transaction partners) previously at the discretion of the transaction partners themselves (Lehdonvirta et al, 2019).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Same Old Song with a Different Melody: The Paradox of Market Reach and Financial Performance on Digital Platforms

Hänninen

Smedlund

2021

J Management Studies

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In the service sector, digital platforms now enable service providers to reach customers through an online marketplace and use the value‐adding complementary services offered. However, despite the widespread prevalence of digital platforms, there has been little research on the market reach and financial performance captured by service providers. We explored these service provider‐specific outcomes of digital platforms by studying a digital platform in the beauty industry. Our results show that digital platforms present a troubling paradox for service providers participating in a platform‐based online marketplace: despite increases in market reach, in terms of a higher rate of new customer acquisition, those service providers participating in the marketplace have lower sales than others. However, the ‘dark side’ of this paradox is compensated by higher sales for service providers using more of the complementary services offered by the platform. Hence, although digital platforms may open new markets and add value, service providers should be wary of their paradoxical consequences. With these findings, we contribute new theoretical and managerial insight about the service provider‐specific outcomes of digital platforms and add to the ongoing debate about firm strategies in the digital age concerning the platform economy.

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From Airbnb to Solar: Toward a Transaction Cost Model of a Retail Electricity Distribution Platform

Cited by 4 publications

References 55 publications

Green energy platform economics – understanding platformization and sustainabilization in the energy sector

Green energy platform economics – understanding platformization and sustainabilization in the energy sector

Hayekian complexity and the role of regulation in electricity markets

Same Old Song with a Different Melody: The Paradox of Market Reach and Financial Performance on Digital Platforms

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