ATM Direct Charging Reform: the Effect of Independent Deployers on welfare

Donze, Jocelyn and Dubec, Isabelle (2009): ATM Direct Charging Reform: the Effect of Independent Deployers on welfare.

Abstract

Recently in Australia, the interchange fees on shared ATM transactions were removed and replaced by a fee directly set and received by the ATM owner ("direct charging scheme"). We develop a model to study how the entry of independent ATM deployers (IADS) affects welfare under the direct charging scheme. Paradoxically, we show that the entry of IADS benefits banks ! It is also good for consumers if they sufficiently value the ATMs deployed by the independent deployers.

• Item Type: MPRA Paper
• Language: English
• Keywords: direct charging reform
• Subjects: G - Financial Economics > G2 - Financial Institutions and Services; L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance

References

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