App-based feedback on safety to novice drivers: learning and monetary incentives

An over-proportionally large number of car crashes is caused by novice drivers. In a field experiment, we investigated whether and how car drivers who had recently obtained their driving license reacted to app-based feedback on their safety-relevant driving behavior (speeding, phone usage, cornering, acceleration and braking). Participants went through a pre-measurement phase during which they did not receive app-based feedback but driving behavior was recorded, a treatment phase during which they received app-based feedback, and a post-measurement phase during which they did not receive app-based feedback but driving behavior was recorded. Before the start of the treatment phase, we randomly assigned participants to two possible treatment groups. In addition to receiving app-based feedback, the participants of one group received monetary incentives to improve their safety-relevant driving behavior, while the participants of the other group did not. At the beginning and at the end of experiment, each participant had to fill out a questionnaire to elicit socio-economic and attitudinal information. We conducted regression analyses to identify socio-economic, attitudinal, and driving-behavior-related variables that explain safety-relevant driving behavior during the pre-measurement phase and the self-chosen intensity of app usage during the treatment phase. For the main objective of our study, we applied regression analyses to identify those variables that explain the potential effect of providing app-based feedback during the treatment phase on safety-relevant driving behavior. Last, we applied statistical tests of differences to identify self-selection and attrition biases in our field experiment. For a sample of 130 novice Austrian drivers, we found moderate improvements in safety-relevant driving skills due to app-based feedback. The improvements were more pronounced under the treatment with monetary incentives, and for participants choosing higher feedback intensities. Moreover, drivers who drove relatively safer before receiving app-based feedback used the app more intensely and, ceteris paribus, higher app use intensity led to improvements in safety-related driving skills. Last, we provide empirical evidence for both self-selection and attrition biases

Asymmetric Information in Automobile Insurance: Evidence from Driving Behavior

Based on a unique data set of driving behavior we test whether private information in driving characteristics has significant effects on contract choice and risk in automobile insurance. We define a driving factor based on overall distance driven, number of car rides, and speeding. Using local weather conditions, we account for the endogeneity of the driving factor. While this driving factor has an effect on risk, there is no significant evidence for selection effects in the level of third-party liability and first-party insurance coverage