Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/144396
Authors: 
Ferrari, Stijn
Year of Publication: 
2010
Series/Report no.: 
Working Paper Research 184
Abstract: 
This paper empirically examines the effects of discriminatory fees on ATM investment and welfare, and considers the role of coordination in ATM investment between banks. Our main findings are that foreign fees tend to reduce ATM availability and (consumer) welfare, whereas surcharges positively affect ATM availability and the different welfare components when the consumers' price elasticity is not too large. Second, an organization of the ATM market that contains some degree of coordination between the banks may be desirable from a welfare perspective. Finally, ATM availability is always higher when a social planner decides on discriminatory fees and ATM investment to maximize total welfare. This implies that there is underinvestment in ATMs, even in the presence of discriminatory fees
Subjects: 
investment
coordination
ATMs
network industries
empirical entry models
spatial discrete choice demand models
JEL: 
G21
L10
L50
L89
Document Type: 
Working Paper

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