Quantifying search and switching costs in the US auto insurance industry
研究在搜索成本和转换成本两种市场摩擦下，消费者如何选择汽车保险公司，发现搜索成本在35-170美元之间，平均转换成本为40美元，消除搜索成本是提升消费者福利的关键。
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.