Competition Before Sunset: The Case of the Finnish ATM Market

Kopsakangas-Savolainen Maria and Tuomas Takalo
Additional contact information
Kopsakangas-Savolainen Maria: Finnish Environment Institute and Department of Economics, Martti Ahtisaari Institute and Thule Institute, University of Oulu, Oulu, Finland

Review of Network Economics, 2014, vol. 13, issue 1, 1-33

Abstract: We study service fee and network size competition in an ATM market between an incumbent and an independent deployer, and its optimal regulation. We also analyze an actual regulation of such a market by competition authorities in Finland. Compared with the first-best regulation, we find unregulated foreign and interchange fees too high and an unregulated size of the incumbent’s ATM network too small. However, if network sizes cannot be directly regulated, then competitive fees may also be too low from the welfare point of view. The Finnish regulation caps the incumbent’s foreign fee which, according to our model, results in an increased interchange fee and a larger ATM network. In contrast with the actual regulation, it would also be essential to regulate the interchange fee.

Keywords: ATM industry; competition policy; regulation; retail payments (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1515/rne-2012-0018 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
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:bpj:rneart:v:13:y:2014:i:1:p:1-33:n:2

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/rne/html

DOI: 10.1515/rne-2012-0018

Access Statistics for this article

Review of Network Economics is currently edited by Lukasz Grzybowski

More articles in Review of Network Economics from De Gruyter
Bibliographic data for series maintained by Peter Golla ().