Atm Surcharges: Effects On Deployment And Welfare
AbstractThis paper analyzes the effects of ATM surcharges on deployment and welfare, in a model where banks compete for ATM and banking services. Foreign fees, surcharges and the interchange fee are endogenously determined. We find that, when the interchange fee is cooperatively fixed by banks to maximize joint profits, surcharges should be allowed, as they neutralize the collusive effect of the interchange fee. As a consequence, ATM deployment is higher and retail prices lower than without surcharges, increasing consumer surplus and social welfare.
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Bibliographic InfoPaper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2007-12.
Length: 40 pages
Date of creation: May 2007
Date of revision:
Publication status: Published by Ivie
ATM; surcharge; foreign fee; interchange fee; collusion;
Other versions of this item:
- Ioana Chioveanu & Ramon Fauli-Oller & Joel Sandonis & Juana Santamaria, 2009. "ATM SURCHARGES: EFFECTS ON DEPLOYMENT AND WELFARE -super-* ," Journal of Industrial Economics, Wiley Blackwell, vol. 57(3), pages 613-635, 09.
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
- G2 - Financial Economics - - Financial Institutions and Services
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-06-11 (All new papers)
- NEP-BAN-2007-06-11 (Banking)
- NEP-COM-2007-06-11 (Industrial Competition)
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- Donze Jocelyn & Dubec Isabelle, 2011.
"ATM Direct Charging Reform: the Effect of Independent Deployers on Welfare,"
Review of Network Economics,
De Gruyter, vol. 10(2), pages 1-23, June.
- Donze, Jocelyn & Dubec, Isabelle, 2009. "ATM Direct Charging Reform: the Effect of Independent Deployers on welfare," MPRA Paper 15818, University Library of Munich, Germany.
- Donze, Jocelyn & Dubec, Isabelle, 2010. "ATM Direct Charging Reform: the Effect of Independent Deployers on Welfare," TSE Working Papers 10-162, Toulouse School of Economics (TSE).
- Donze, Jocelyn & Dubec, Isabelle, 2010. "ATM Direct Charging Reform: the Effect of Independent Deployers on Welfare," MPRA Paper 23176, University Library of Munich, Germany.
- Wenzel, Tobias, 2013.
"Independent service operators in ATM markets,"
DICE Discussion Papers
96, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
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