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Death by Pokémon GO: The Economic and Human Cost of Using Apps While Driving

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  • Mara Faccio
  • John J. McConnell

Abstract

We investigate the link between smartphone usage by drivers and increases in insurance premiums by using police accident reports and exploiting the introduction of the augmented reality game Pokémon GO as a natural experiment. We document a disproportionate increase in crashes, vehicular damage, injuries, and fatalities in the vicinity of locations where users can play the game while driving. Ignoring incremental lives lost, the lower bound estimate of the cost of users playing the game while driving translates to an increase in insurance premiums of 2.47 percent.

Suggested Citation

  • Mara Faccio & John J. McConnell, 2020. "Death by Pokémon GO: The Economic and Human Cost of Using Apps While Driving," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 87(3), pages 815-849, September.
    • Handle: RePEc:bla:jrinsu:v:87:y:2020:i:3:p:815-849
    DOI: 10.1111/jori.12301
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    References listed on IDEAS

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    1. repec:reg:rpubli:58 is not listed on IDEAS
    2. Mitchell A. Petersen, 2009. "Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches," The Review of Financial Studies, Society for Financial Studies, vol. 22(1), pages 435-480, January.
    3. Joshua T. Cohen & John D. Graham, 2003. "A Revised Economic Analysis of Restrictions on the Use of Cell Phones While Driving," Risk Analysis, John Wiley & Sons, vol. 23(1), pages 5-17, February.
    4. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    5. Rahi Abouk & Scott Adams, 2013. "Texting Bans and Fatal Accidents on Roadways: Do They Work? Or Do Drivers Just React to Announcements of Bans?," American Economic Journal: Applied Economics, American Economic Association, vol. 5(2), pages 179-199, April.
    6. J. Bradley Karl & Charles Nyce, 2019. "How Cellphone Bans Affect Automobile Insurance Markets," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 86(3), pages 567-593, September.
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    Cited by:

    1. Anand, Vaibhav, 2022. "The Value of Forecast Improvements: Evidence from Advisory Lead Times and Vehicle Crashes," MPRA Paper 114491, University Library of Munich, Germany.
    2. Brands, Devi & Klingen, Joris & Ostermeijer, Francis, 2022. "Hands on the wheel, eyes on the phone: The effect of smartphone usage fees on road safety," European Economic Review, Elsevier, vol. 146(C).

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