Volume 12 (2013)
Volume 11 (2012)
Volume 10 (2011)
Volume 8 (2009)
Volume 7 (2008)
Volume 6 (2007)
Volume 5 (2006)
Volume 4 (2005)
Volume 2 (2003)
Most Downloaded Articles
- Container Shipping And Ports: An Overview by Notteboom, Theo E.
- Optimal Monopoly Price Paths with Expanding Networks by Gabszewicz, Jean and Garcia, Filomena
- The Economics of the Online Advertising Industry by Evans, David S.
- Merchant or Two-Sided Platform? by Hagiu, Andrei
- Failure to Launch: Critical Mass in Platform Businesses by Evans, David S. and Schmalensee, Richard
Incompatibility and Investment in ATM Networks
1Federal Reserve Board, email@example.com
1Federal Reserve Board
Citation Information: Review of Network Economics. Volume 6, Issue 1, Pages –, ISSN (Online) 1446-9022, DOI: 10.2202/1446-9022.1107, March 2007
- Published Online:
Incompatibility across rival systems can influence incentives to invest in product changes beneficial to the consumer. We investigate this phenomenon in the case of bank ATM networks, where the number of ATM locations is a measure of product quality and surcharge fees serve as an index of incompatibility. Using as a natural experiment the lifting of a surcharge ban in Iowa (and not in neighboring states), we find that the associated increase in incompatibility for Iowa banks caused a substantial increase in the number of ATM locations offered to customers. This effect is larger (in percentage terms) for larger banks.