Transforming Payment Choices By Doubling Fees on the Illinois Tollway

26 Pages Posted: 6 Dec 2006

See all articles by Gene Amromin

Gene Amromin

Federal Reserve Bank of Chicago

Carrie Jankowski

Federal Reserve Bank of Chicago

Richard D. Porter

Federal Reserve Bank of Chicago

Abstract

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.

Keywords: payment choice, social network externalities, response to large relative price changes

JEL Classification: D12, R48

Suggested Citation

Amromin, Gene and Jankowski, Carrie and Porter, Richard D., Transforming Payment Choices By Doubling Fees on the Illinois Tollway. Economic Perspectives, Vol. XXXI, No. 2, Second Quarter 2007; FRB of Chicago Working Paper No. 2006-16. Available at SSRN: https://ssrn.com/abstract=949858

Gene Amromin (Contact Author)

Federal Reserve Bank of Chicago ( email )

230 South LaSalle Street
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Carrie Jankowski

Federal Reserve Bank of Chicago ( email )

230 South LaSalle Street
Chicago, IL 60604
United States

Richard D. Porter

Federal Reserve Bank of Chicago ( email )

230 South LaSalle Street
Chicago, IL 60604
United States

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