Does the Product Quality Hypothesis Hold True? - Service Quality Differences between Independent and Exclusive Insurance Agents
Insurance products are distributed both by independent and dependent agents, although the use of independent agents is more costly. The product quality hypothesis states that independent agents provide both insurers and customers with higher service quality and therefore, remain on the market. On the contrary, according to the market imperfections hypothesis both intermediary types offer the same quality, and only coexist due to information asymmetries. Having conducted a written survey, we measure service quality differences by multivariate regression analysis. Our analysis shows that the higher level of service quality of independent agents supports the product quality hypothesis. The result is a separating equilibrium on the market.
Year of publication: |
2007
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Authors: | Gamarra, Lucinda Trigo |
Institutions: | Institut für Volkswirtschaftlehre, Universität Rostock |
Subject: | Insurance intermediation | service quality | distribution systems |
Saved in:
freely available
Extent: | application/pdf |
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Series: | Thuenen-Series of Applied Economic Theory. - ISSN 1431-4118. |
Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Number 76 21 pages |
Classification: | G22 - Insurance; Insurance Companies ; L15 - Information and Product Quality; Standardization and Compatibility ; L22 - Firm Organization and Market Structure: Markets vs. Hierarchies; Vertical Integration |
Source: |
Persistent link: https://www.econbiz.de/10004988437