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...

We summarize the literature dealing with the pricing of ATM withdrawals. We highlight the effects of the pricing scheme on the network size, on banks’ profits and on consumer surplus. We also examine two recent reforms that took place in Australia and in the United Kingdom in order to increase...

We show that regulating the interchange fee at cost reduces banks’ incentives to deploy free ATMs over time. Simultaneously, more and more pay-to-use ATMs are deployed by independent ATM deployers. These results are consistent with the recent evolution of the British ATM market.

We compare the effects of the three most common ATM pricing regimes on consumers’ welfare and banks’ profits. We consider cases where the ATM usage is free, where customers pay a foreign fee to their bank and where they pay a foreign fee and a surcharge. Paradoxically, when banks set an...

We show that regulating interchange fees at cost reduces banks' incentives to deploy free ATMs over time. Simultaneously, more and more charging ATMs are deployed by independent deployers. These results are consistent with the recent evolution of the British ATM market.

We compare the effects on welfare of the three most common regimes for pricing shared ATM transactions: (i) free usage, (ii) foreign fees, and (iii) foreign fees and surcharges. Paradoxically, banks' profits decrease each time banks set an additional fee while consumers' welfare is higher when...

We develop a model to study the deployment of shared automated teller machines (ATMs) by banks when an interchange system compensates them for processing foreign withdrawals. The interchange fee is chosen collectively by banks and it is paid by the withdrawer's bank to the ATM-owning bank. We...

In Australia, on the 3rd of March 2009, the interchange fees on shared ATM transactions were removed and replaced by fees directly set and received by the ATM owners. We develop a model to study how the entry of independent ATM deployers (IADs) aspects welfare under this direct charging scheme....

This paper studies how a firm fosters formal and informal interactions among its employees to create a collective identity and positively influence effort. We develop a model where employees have both a personal and a social ideal for effort, and where the firm can make its workforce more...