The DOI matches its Crossref record; 3 of the 3 references it cites were found in a registry or an index.
Quantifying search and switching costs in the US auto insurance industry
Open accessAbstract
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.
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Cites
The Market for "Lemons": Quality Uncertainty and the Market Mechanism
Akerlof, G. A. (1970) · The Quarterly Journal of Economics · doi:10.2307/1879431 · Cited by 23,016
Adverse Selection and Inertia in Health Insurance Markets: When Nudging Hurts
Handel, B. R. (2013) · American Economic Review · doi:10.1257/aer.103.7.2643 · Cited by 707
Brand and Quantity Choice Dynamics Under Price Uncertainty
Erdem, T., Imai, S., & Keane, M. P. (2003) · Quantitative Marketing and Economics · doi:10.1023/a:1023536326497 · Cited by 331
Cited by
Goldfarb, A., & Tucker, C. (2019) · Journal of Economic Literature · doi:10.1257/jel.20171452 · Cited by 2,744
Adverse Selection and Inertia in Health Insurance Markets: When Nudging Hurts
Handel, B. R. (2013) · American Economic Review · doi:10.1257/aer.103.7.2643 · Cited by 707
Ursu, R. M. (2018) · Marketing Science · doi:10.1287/mksc.2017.1072 · Cited by 328
Refinancing cross-subsidies in the mortgage market
Fisher, J., Gavazza, A., Liu, L., Ramadorai, T., & Tripathy, J. (2024) · Journal of Financial Economics · doi:10.1016/j.jfineco.2024.103876 · Cited by 34
Welfare Implications of Fairness and Accountability for Insurance Pricing
Shimao, H., & Huang, F. (2022) · SSRN Electronic Journal · doi:10.2139/ssrn.4225159 · Cited by 4
Metadata
- Authors
- Honka, E.
- Venue
- The RAND Journal of Economics
- Publisher
- Wiley
- Published
- 2014-10-29
- Volume
- 45
- Issue
- 4
- Pages
- 847-884
- ISSN
- 0741-6261 (ISSN-L)
- 1756-2171
- OpenAlex
- W3121163377
- Cited by
- 325
- References
- 3
- FWCI
- 67.33
- Type
- journal article
- Language
- en
- Open access
- green
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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