Nonparametric Estimation of Search Costs for Differentiated Products: Evidence from Medigap
提出一种非参数方法估计差异化产品市场的搜索成本和偏好参数，应用于美国补充医疗保险市场，发现搜索成本中位数为30美元，消除搜索成本可使价格下降最多71美元（4.7%），消费者福利增加最多374美元。
This article develops a method to estimate search frictions as well as preference parameters in differentiated product markets. Search costs are nonparametrically identified, which means our method can be used to estimate search costs in differentiated product markets that lack a suitable search cost shifter. We apply our model to the U.S. Medigap insurance market. We find that search costs are substantial: the estimated median cost of searching for an insurer is $30. Using the estimated parameters we find that eliminating search costs could result in price decreases of as much as $71 (or 4.7%), along with increases in average consumer welfare of up to $374.