Aurichio, Bruno; Braido, Luis H. B. - Fundação Instituto Capixaba de Pesquisas em … - 2009
Brazilian data on auto-insurance present an intriguing fact: the coexistence of policies being sold with zero and positive brokerage fees. We extend the Bertrand model of price competition to a dynamic environment in which agents face a .xed cost to switch to a new (unmatched) broker. This...