This article investigates the degree to which buyers choose to diversify their use of payment methods for in-person purchases. Some buyers use only one payment instrument. Others combine the use of mostly cash, credit, and debit cards, and a few paper checks and prepaid cards. To each survey...

The emergence of cashless stores has led several cities and states to ban such stores. This article investigates this issue by characterizing consumers who pay cash for in-person purchases and consumers who do not have credit or debit cards. Using a random utility model, I estimate 1.3 to 30.9...

The emergence of cashless stores has led several cities and states to ban such stores. This article investigates this policy issue by characterizing consumers who pay cash for in-person purchases and banked and unbanked consumers who do not have credit or debit cards. Using a random utility...

This paper examines a new extensive-form variation of the Colonel Blotto game with two distinct features: (i) in the first stage each player inherits an initial allocation of force across battlefields, which is publicly observable, and (ii) in the second stage it is costly to relocate forces...

The study of consumer payment choice at the point of sale involves a classification of payment methods such as cash, credit cards, debit cards, prepaid cards, paper checks, and electronic payments withdrawn from consumers' bank account. I describe alternative methods for studying consumer...

This paper investigates the market consequences of alliance formation among stock exchanges. These alliances enable brokers to match investors internationally at their local market, thereby eliminating the need for brokers to maintain memberships in foreign stock exchanges. We sort out the...

Low-income consumers are not only constrained with spending, but also with the type and variety of payment methods available to them. Using a representative sample of the U.S. adult population, this short article analyzes the low possession (adoption) of credit and debit cards among low-income...

This paper explains why payment card companies charge consumers and merchants fees which are proportional to the transaction values instead of charging a fixed per-transaction fee. Our theory shows that, even in the absence of any cost considerations, card companies earn much higher profit when...