ATM SURCHARGES: EFFECTS ON DEPLOYMENT AND WELFARE
Ramón Faulí-Oller (),
Ioana Chioveanu (),
Joel Sandonis and
Juana Santamaria-Garcia ()
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Ramón Faulí-Oller: Universidad de Alicante
Juana Santamaria-Garcia: Universidad de Alicante
Working Papers. Serie AD from Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie)
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 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.
Keywords: ATM; surcharge; foreign fee; interchange fee; collusion (search for similar items in EconPapers)
JEL-codes: L1 G2 (search for similar items in EconPapers)
Pages: 40 pages
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http://www.ivie.es/downloads/docs/wpasad/wpasad-2007-12.pdf Fisrt version / Primera version, 2007 (application/pdf)
Journal Article: ATM SURCHARGES: EFFECTS ON DEPLOYMENT AND WELFARE* (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:ivi:wpasad:2007-12
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