Quantifying search and switching costs in the US auto insurance industry.
I estimate demand for auto insurance in the presence of two types of market frictions: search and switching costs. I develop an integrated utility-maximizing model in which consumers decide over which and how many companies to search and from which company to purchase. My modelling approach rational...
| Publicado en: | RAND Journal of Economics (Wiley-Blackwell) Vol. 45; no. 4; pp. 847 - 885 |
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| Formato: | Artículo |
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Wiley-Blackwell
Winter2014
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=99108145&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 99108145 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 07416261 56RJ jtl: RAND Journal of Economics (Wiley-Blackwell) issn: 07416261 maglogo: Y pubinfo: dt: Winter2014 vid: 45 iid: 4 pid: 480 pub: Wiley-Blackwell artinfo: ui: 99108145 10.1111/1756-2171.12073 ppf: 847 ppct: 38 formats: fmt: – @attributes: type: T – @attributes: type: P size: 363KB tig: atl: Quantifying search and switching costs in the US auto insurance industry. aug: au: Honka, Elisabeth affil: University of Texas at Dallas su: United States Customer retention Switching costs Insurance companies Automobile industry sug: subj: United States Motor Vehicle Body Manufacturing New and used automobile and light-duty truck merchant wholesalers Automobile Manufacturing Automobile and Other Motor Vehicle Merchant Wholesalers New Car Dealers Automobile and light-duty motor vehicle manufacturing Insurance Agencies and Brokerages Other Direct Insurance (except Life, Health, and Medical) Carriers Direct Health and Medical Insurance Carriers Direct group life, health and medical insurance carriers Customer retention Switching costs Insurance companies Automobile industry ab: I estimate demand for auto insurance in the presence of two types of market frictions: search and switching costs. I develop an integrated utility-maximizing model in which consumers decide over which and how many companies to search and from which company to purchase. My modelling approach rationalizes observed consideration sets as being the outcomes of consumers' search processes. I find search costs to range from $35 to $170 and average switching costs of $40. Search costs are the most important driver of customer retention and their elimination is the main lever to increase consumer welfare in the auto insurance industry. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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