Wenzel, T. (2013) Independent Service Operators in ATM Markets. Scottish Journal of Political Economy, 61 (1). pp. 26-47. ISSN 0036-9292
Abstract
This paper studies the impact of entry of non-banks (termed Independent Service Operators, ISOs) into ATM markets. We compare two different regimes by which the ISO may generate income: (1) The ISO receives interchange fees and (2) the ISO charges consumers directly. We find that due to the entry of an ISO, the size of the total ATM network increases independent of the way the ISO is financed. Account fees increase if the ISO receives interchange fees and decrease if the ISO charges consumers directly. Consumers may not benefit from the entry of the ISO. If a regulator can control the interchange fee, entry by an ISO financed through interchange fees increases consumer surplus, while the entry of a surcharging ISO decreases consumer surplus.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2013 Scottish Economic Society. This is an author produced version of a paper subsequently published in Scottish Journal of Political Economy. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Banking; ATM networks; Investment |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Department of Economics (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 18 Oct 2018 15:49 |
Last Modified: | 20 Oct 2018 02:47 |
Published Version: | https://doi.org/10.1111/sjpe.12033 |
Status: | Published |
Publisher: | Wiley |
Refereed: | Yes |
Identification Number: | 10.1111/sjpe.12033 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:136979 |