The recent spread of ATM surcharges has sparked significant debate among consumers, policymakers, and ATM owners. Much of this debate has focused on the direct costs that surcharges impose on consumers. The use of ATM surcharges, however, also raises broader questions about ATM deployment,...

This paper develops a model of wholesale and retail fee-setting for automated teller machine (ATM) network services, and comparative statics results are derived. Retail ATM fees are shown to be dependent on the demand-side network effect and economies of scale in production of network services....

Millions of Americans are hooked on the convenience of ATMs. But ready cash is getting more expensive. Should policymakers butt in or let the marketplace decide?

We estimate a structural model of the market for automatic teller machines (ATMs) in order to evaluate the implications of regulating ATM surcharges on ATM entry and consumer and producer surplus. We estimate the model using data on firm and consumer locations, and identify the parameters of the...

Many automated teller machine (ATM) networks are partially vertically integrated. A group of downstream retail banks own and operate the upstream network switch. The size of the group varies from network to network. The same situation exists in other network businesses, including airline...