Do Consumers Pay More Using Debit Cards than Cash? An Experiment

Emma Runnemark, Jonas Hedman () and Xiao Xiao ()
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Jonas Hedman: Department of IT Management, Copenhagen Business School, Postal: Department of IT Management, , Copenhagen Business School, , Howitzvej 60, , DK-2000, Copenhagen, , Denmark, http://www.cbs.dk/en/research/departments-and-centres/department-of-it-management/staff/jhitm
Xiao Xiao: Department of IT Management, Copenhagen Business School, Postal: Department of IT Management, , Copenhagen Business School, , Howitzvej 60, , DK-2000, Copenhagen, , Denmark, http://www.cbs.dk/en/research/departments-and-centres/department-of-it-management/staff/xxitm

No 2014:21, Working Papers from Lund University, Department of Economics

Abstract: We conduct an incentivized experiment to test whether the willingness to pay is higher for debit cards compared to cash for three consumer products. Our findings support this conjecture also after controlling for cash availability, spending type, price familiarity and consumption habits of the products. The evidence thus suggests that different representations of money matters for consumer behavior.

Keywords: payment methods; debit cards; cash; willingness-to-pay (search for similar items in EconPapers)
JEL-codes: D03 D10 E42 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2014-05-21
New Economics Papers: this item is included in nep-cbe, nep-exp and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:lunewp:2014_021

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