Conference Paper
Transforming payment choices by doubling fees on the Illinois Tollway
Abstract: On January 1, 2005, Illinois doubled the highway toll for travelers paying with cash, but kept the price unchanged for those paying electronically. This paper combines a theoretical model of payment choice with empirical analysis based on this rare natural experiment of differential pricing depending on the method of payment: cash versus electronic payment. An actual response to a price change allows the authors to estimate the sensitivity of consumer payment demand to prices.
Keywords: Payment systems;
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File(s): File format is application/pdf https://www.bostonfed.org/-/media/documents/events/payment-choice-2005/papers/porter.pdf
Bibliographic Information
Provider: Federal Reserve Bank of Boston
Part of Series: Conference Series ; [Proceedings]
Publication Date: 2005