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Consumer Surplus of Alternative Payment Methods: Paying Uber with Cash

Author

Listed:
  • Fernando E. Alvarez
  • David O. Argente

Abstract

We estimate the private benefits for Uber riders from using alternative payment methods. We focus on Mexico where riders have the option to use cash or credit cards to pay for rides. We use three field experiments involving approximately 400,000 riders to estimate the loss of private benefits for riders if a ban on cash payments is implemented. We find that Uber riders, using cash as means of payment either sometimes or exclusively, suffer an average loss of approximately 50% of their expenditures on trips paid in cash before the ban.

Suggested Citation

  • Fernando E. Alvarez & David O. Argente, 2020. "Consumer Surplus of Alternative Payment Methods: Paying Uber with Cash," NBER Working Papers 28133, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:28133
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    Cited by:

    1. Fernando Alvarez & David Argente, 2022. "On the Effects of the Availability of Means of Payments: The Case of Uber," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 137(3), pages 1737-1789.
    2. Alvarez, Fernando & Argente, David & Jimenez, Rafael & Lippi, Francesco, 2022. "Cash: A Blessing or a curse?," Journal of Monetary Economics, Elsevier, vol. 125(C), pages 85-128.
    3. Tom Cusbert, 2023. "The Effect of Credit Constraints on Housing Prices: (Further) Evidence from a Survey Experiment," RBA Research Discussion Papers rdp2023-01, Reserve Bank of Australia.

    More about this item

    JEL classification:

    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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