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={ERN: Consumer Behavior (Topic)},
  year={2014}
}
  • Elisabeth Honka
  • Published 3 April 2014
  • Economics, Business
  • ERN: Consumer Behavior (Topic)
type="main"> 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… 
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272 Citations
Highly Influential Citations
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Background Citations
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Methods Citations
40
Results Citations
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272 Citations

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