Honka, E. (2014): Quantifying search and switching costs in the US auto insurance industry. RAND Journal of Economics, 45(4), 847-884.Honka, E. (2014): "Quantifying search and switching costs in the US auto insurance industry," The Rand Journal of Economics, 45, 847-884....
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Taking our model to the data, we find that there are substantial search and switching costs in the auto insurance industry. We are thus able to provide an explanation for the very high observed retention rate in this industry and also explain why insurance providers advertise very high potential...