• DOI:10.2139/ssrn.2023446
Corpus ID: 38652927

Quantifying Search and Switching Costs in the U.S. Auto Insurance Industry

@article{Honka2014QuantifyingSA,
  title={Quantifying Search and Switching Costs in the U.S. Auto Insurance Industry},
  author={Elisabeth Honka},
  journal={Microeconomics: Search; Learning; Information Costs & Specific Knowledge; Expectation & Speculation eJournal},
  year={2014}
}

Elisabeth Honka

Published 2014

Economics

Microeconomics: Search; Learning; Information Costs & Specific Knowledge; Expectation & Speculation eJournal

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 modeling 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… CONTINUE READING

View on SSRN

anderson.ucla.edu

Save to Library

Create Alert

Cite

Launch Research Feed