Multiple searches for information can increase individual participation in occupational pension programs. This paper tests hypotheses derived from transaction cost theory and search theory to explain the formation of information networks on pensions. Using a dataset representative of the German population, we empirically investigate the determinants of network formation with respect to information about occupational pensions. We find that transaction costs, provision of information by the employer, quality of the intermediary, and subjective concern with this topic increase willingness to participate in a network and increase the number of network partners.
information search occupational pensions network formation