Transforming Payment Choices By Doubling Fees on the Illinois Tollway
26 Pages Posted: 6 Dec 2006
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
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