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

35 Pages Posted: 30 Sep 2020

See all articles by Mara Faccio

Mara Faccio

Purdue University - Krannert School of Management; National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI); National University of Singapore (NUS) - Asian Bureau of Finance and Economic Research (ABFER)

John J. McConnell

Purdue University

Multiple version iconThere are 3 versions of this paper

Date Written: September 2020

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

Faccio, Mara and McConnell, John J., Death by Pokémon Go: The Economic and Human Cost of Using Apps While Driving (September 2020). Journal of Risk and Insurance, Vol. 87, Issue 3, pp. 815-849, 2020, Available at SSRN: https://ssrn.com/abstract=3700051 or http://dx.doi.org/10.1111/jori.12301

Mara Faccio (Contact Author)

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John J. McConnell

Purdue University ( email )

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