Why Don't Most Merchants Use Price Discounts to Steer Consumer Payment Choice?
نویسندگان
چکیده
منابع مشابه
Consumer Payment Choice: Measurement Topics
What are the determinants of consumer choice over payment mechanisms? The answer to this question is important for a variety of reasons. Every government has the responsibility of supporting an efficient and effective payment system. Doing so is an explicit mandate of the Federal Reserve Bank in the United States. In addition, nothing is more central to private sector commerce than collecting p...
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By using a unique data set that contains detailed information on consumer perceived attributes of payment methods and consumer perceived acceptance of payment methods by merchants, we estimate the direct effects of rewards card programs on consumer payment choice for in-store transactions. Our estimation approach, which follows Harris and Keane [1999], allows us to alleviate the endogeneity pro...
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We exploit scanner data to track payment choice for grocery purchases for a large panel of households over three years. We show that households focus most of their expenditures on one or at most two of these instruments in choosing between using cash, a check, or a card, and they very rarely switch. We focus particularly on the role of expenditure size in determining payment choice. While the u...
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This paper extends the literature on consumer reactions to future price changes to a new context – markets with substantial repeat purchase behavior – where the efficacy of common dynamic pricing strategies turns on the strength of these reactions. Utilizing the unique discount structure in automobile insurance, I am able to measure the extent to which consumers react to changes in the future p...
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We study the ability of banks and merchants to influence the consumer’s payment instrument choice. Consumers participate in payment card networks to insure themselves against three types of shocks— income, theft, and their merchant match. Merchants choose which payment instruments to accept based on their production costs and increased profit opportunities. Our key results can be summarized as ...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2013
ISSN: 1556-5068
DOI: 10.2139/ssrn.2361704