Payment Choice with Consumer Panel Data

26 Pages Posted: 11 Aug 2013

See all articles by Michael Andrew Cohen

Michael Andrew Cohen

New York University (NYU) - Department of Marketing

Marc Rysman

Boston University - Department of Economics

Date Written: June 20, 2013

Abstract

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 use of a long panel for these purposes is novel, the introduction of controls for household heterogeneity has little effect on our estimates. Thus, we find that transaction size is an important determinant of payment choice, not only across households but within households.

JEL Classification: L5, D12

Suggested Citation

Cohen, Michael Andrew and Rysman, Marc, Payment Choice with Consumer Panel Data (June 20, 2013). FRB of Boston Working Paper No. 13-6, Available at SSRN: https://ssrn.com/abstract=2308121 or http://dx.doi.org/10.2139/ssrn.2308121

Michael Andrew Cohen

New York University (NYU) - Department of Marketing ( email )

Henry Kaufman Ctr
44 W 4 St.
New York, NY
United States

Marc Rysman (Contact Author)

Boston University - Department of Economics ( email )

270 Bay State Road
Boston, MA 02215
United States
617-353-3086 (Phone)
617-353-4449 (Fax)

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
542
Abstract Views
2,139
Rank
94,162
PlumX Metrics