Investment and Usage of New Technologies: Evidence from a Shared ATM Network

Stijn Ferrari, Frank Verboven and Hans Degryse

American Economic Review, 2010, vol. 100, issue 3, 1046-79

Abstract: The success of new technologies depends on both the firms' investment and consumers' usage decisions. We study this problem in a shared ATM network. Inefficiencies may arise because banks coordinate investment, and consumers may not make proper use of the network. Based on an empirical model of ATM investment and demand, we find that banks substantially underinvested in ATMs, in contrast with earlier findings of strategic overinvestment in the United States. Furthermore, ATM usage was too low, because regulation prohibited fees for cash withdrawals. A direct promotion of investment improves welfare, but fees for branch cash withdrawals would be more effective. (JEL G21, G31, O33)

JEL-codes: G21 G31 O33 (search for similar items in EconPapers)
Date: 2010
Note: DOI: 10.1257/aer.100.3.1046
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

Downloads: (external link)
http://www.aeaweb.org/articles.php?doi=10.1257/aer.100.3.1046 (application/pdf)
http://www.aeaweb.org/aer/data/june2010/20071405_data.zip (application/zip)
http://www.aeaweb.org/aer/data/june2010/20071405_app.pdf (application/pdf)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
Working Paper: Investment and Usage of New Technologies: Evidence from a Shared ATM Network (2008)
Working Paper: Investment and Usage of New Technologies: Evidence from a Shared ATM Network (2008)
Working Paper: Investment and Usage of New Technologies: Evidence from a Shared ATM Network (2007)
Working Paper: Investment and usage of new technologies: evidence form a shared ATM network (2007)
Working Paper: Investment and Usage of New Technologies: Evidence from a Shared ATM Network (2007)
Working Paper: Investment and Usage of New Technologies: Evidence from a Shared ATM Network (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:aecrev:v:100:y:2010:i:3:p:1046-79

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

American Economic Review is currently edited by Esther Duflo

More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().