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Conference Paper
Transforming payment choices by doubling fees on the Illinois Tollway
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.
Journal Article
Against the tide—currency use among Latin American immigrants in Chicago
While the U.S. continues to transition away from cash toward electronic payment methods, some population segments continue to rely heavily on cash. In this study of foreign-born Latin Americans in Chicago, the authors find that the dramatic increase in the number of immigrants is supporting a growing demand for currency, notably in the $100 denomination.
Journal Article
Transforming payment choices by doubling fees on the Illinois Tollway
Using data from the Illinois Tollway, the authors study the effectiveness of a particular application of pricing incentives, in conjunction with a mass-marketing campaign, to foster adoption of electronic toll collection. Dissecting the consumer response by income level, the authors reveal interesting heterogeneity of consumer payment choice in this environment.
Newsletter
Inducing more efficient payment on the Illinois Tollway
Historically, an important part of Chicago?s economic strength derived from its geographic location at the nexus of the country?s transportation networks. Yet, until quite recently, the payment options on the Illinois Tollway seemed incongruous with the remarkably efficient transportation network that has kept Chicago on the country?s economic forefront.
Newsletter
Using payment innovations to improve transportation networks: a conference summary
On June 12, 2007, Chicago Metropolis 2020 and the Federal Reserve Bank of Chicago jointly hosted a conference to discuss road pricing strategies, as well as other issues related to reducing transportation congestion and improving economic efficiency in the Chicago region and around the world. On June 12, 2007, Chicago Metropolis 2020 and the Federal Reserve Bank of Chicago jointly hosted a conference to discuss road pricing strategies, as well as other issues related to reducing transportation congestion and improving economic efficiency in the Chicago region and around the world.
Newsletter
Investing in payment innovations: risks and rewards
Advances in technology have helped usher in new payment mechanisms catered to current demographic and cross-border demands. Yet these payment innovations also pose increasingly complex security challenges worldwide. Participants at a recent Chicago Fed conference discussed the implications of these developments for the payments industry.
Newsletter
Payments pricing: who bears the cost? - a conference summary
As consumers and merchants increasingly adopt electronic payments, the pricing of these services has generated substantial scrutiny by public authorities around the world. To discuss these developments and related issues, the Federal Reserve Bank of Chicago hosted its ninth annual Payments Conference on May 14?15, 2009.
Newsletter
Forces shaping the payments environment: a summary of the Chicago Fed’s 2005 Payments Conference
Three main forces?innovations, incentives, and regulation?have affected the migration to more efficient payment mechanisms. Though several payment alternatives have been introduced recently, many have not been widely adopted. The Chicago Fed held a conference to explore why certain payment innovations have been more successful than others.
Newsletter
Innovations, incentives, and regulation: forces shaping the payments environment
The migration to more efficient payment mechanisms is affected by innovations, incentives, and regulation. While advances in technology have yielded numerous payment method alternatives, many have not been widely adopted. A recent Chicago Fed conference explored why certain payment innovations have been more successful than others.