Who Benefits from Big Data Collected by In-Vehicle Data Recorders?
2017/01/03
研討會日期 : 2017-01-03
時間 : 14:30
主講人 : Professor Yu-Hung Chen
主持人 : Professor Meng-Yu Liang
地點 : Conference Room B110
演講者簡介 : Professor Chen received his Ph.D. in Economics from Washington University in St. Louis. He is an Assistant Professor at National Taiwan University College of Management. His research fields are Quantitative Marketing, Dynamic Pricing Strategy, High-Tech Marketing and Applied Game Theory.
演講摘要 : The car insurance market is plagued with problems of adverse selection and moral hazard. In-vehicle data recorders can collect massive amount of information (or “big data”) about the drivers’ risk factors and driving behaviors. This monitoring technology allows the firm to set its insurance premium based on better estimates of the driver’s risk factors, alleviating the adverse selection problem. In addition, the firm can charge a premium based on the customer’s recorded driving behaviors; this helps to reduce the driver’s moral hazard. I provide an analytical framework to examine the impact of such monitoring technology on the insurance firms and the consumers. My analysis shows that in a duopoly one firm’s adoption of the monitoring technology may benefit both firms because of the less severe competition in the market. Finally, I show that if one firm has adopted the monitoring technology, its competitor may have no incentive to adopt that technology even if it is free.
