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Monday, August 2 • 10:45am - 12:15pm
1A1 Insurance Bundling and Market Power

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Authors: Sabrina Du, Saint Norbert College; Cameron Ellis, Temple University

Product bundling is a popular way for companies to retain their customers and keep up with fast-changing market demand. We examine how product bundling impacts the price elasticity for insurance products. We estimate a model of consumer demand for auto and homeowners' insurance using a random coefficients logit model. Our model incorporates flexible consumer preferences over companies' characteristics and ability to bundle their products. We exploit asymmetry in the impact of state insurance tax laws for identification.

Discussant
avatar for Martin Halek

Martin Halek

University of Calgary

Presenters
SD

Sabrina Du

Saint Norbert College



Monday August 2, 2021 10:45am - 12:15pm EDT