Quantifying Search and Switching Costs in the US Auto Insurance Industry

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dc.contributor.ISNI0000 0001 2548 8581 (Honka, E)en_US
dc.contributor.authorHonka, Elisabethen_US
dc.date.accessioned2015-01-21T22:30:33Z
dc.date.available2015-01-21T22:30:33Z
dc.date.created2014-10-29en_US
dc.description.abstractI 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.en_US
dc.identifier.bibliographicCitationHonka, Elisabeth. 2014. "Quantifying search and switching costs in the US auto insurance industry." RAND Journal of Economics 45(4): 847-884.en_US
dc.identifier.issn0741-6261en_US
dc.identifier.issue4en_US
dc.identifier.urihttp://hdl.handle.net/10735.1/4280
dc.identifier.volume45en_US
dc.relation.urihttp://dx.doi.org/10.1111/1756-2171.12073en_US
dc.rights©2014 RANDen_US
dc.source.journalRAND Journal of Economicsen_US
dc.subjectEconomicsen_US
dc.subjectAutomobile insuranceen_US
dc.subjectSearching costsen_US
dc.subjectSwitching costsen_US
dc.titleQuantifying Search and Switching Costs in the US Auto Insurance Industryen_US
dc.type.genrearticleen_US

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