Pre-shifting customer behavior in response to dynamic pricing events

Prevailing research on customer response to dynamic pricing focuses on price elasticity of demand. An element of customer response which is not well understood is the elasticity of (temporal) substitution. Customers are encouraged to reschedule their demand to non-peak hours, but the extent to which they are willing or able to shift demand remains undetermined. This paper investigates load-shifting behavior in response to dynamic pricing among both customers experienced with and new to demand response.