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ATM SURCHARGES: EFFECTS ON DEPLOYMENT AND WELFARE*

Ioana Chioveanu (), Ramon Fauli‐oller, Joel Sandonis and Juana Santamaria

Journal of Industrial Economics, 2009, vol. 57, issue 3, 613-635

Abstract: This 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 situations in which surcharges are welfare enhancing. Under strategic fee setting, the increase in deployment caused by surcharging might compensate the surplus loss caused by the increase in prices.

Date: 2009
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https://doi.org/10.1111/j.1467-6451.2009.00385.x

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Working Paper: ATM SURCHARGES: EFFECTS ON DEPLOYMENT AND WELFARE (2007) Downloads
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Journal of Industrial Economics is currently edited by Pierre Regibeau, Yeon-Koo Che, Kenneth Corts, Thomas Hubbard, Patrick Legros and Frank Verboven

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