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Consumer Welfare of Alternative Payment Methds

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  • Fernando Alvarez

    (University of Chicago)

Abstract

In several Latin American countries, and in Mexico in particular, Uber rides can be paid with cash, credit card, or Uber card/gift card (pre-paid card). We conduct price experimentation on the different payments methods, as well as in the adoption of credit card and/or Uber/gift card. Additionally, we use a difference-in-difference approach to take advantage of the fact that cash was never allowed as a payment method in Mexico City, but it is allowed in the neighboring counties. We measure the consumer surplus accruing from using cash as a payment method, i.e. a measure of the net benefits accrued to riders for being able to use cash as a payment method.

Suggested Citation

  • Fernando Alvarez, 2019. "Consumer Welfare of Alternative Payment Methds," 2019 Meeting Papers 1533, Society for Economic Dynamics.
  • Handle: RePEc:red:sed019:1533
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