If You Do What You Always Did, Do You Get What You Always Got?Performance Implications of Status Quo Bias in Swiss Energy Investments

摘要

Traditional utilities often have high cost of capital,which limits their investment choices to the projectspromising high returns, but also subject to significantrisks.The objective of this paper is to find out:1. Whether Swiss utilities follow this rule and onlyinvest in projects with high return/high risk profile.2. Whether realized returns correspond to expectedones. If not – find the reasons for mismatch.