This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

American Economic Review: Vol. 100 No. 3 (June 2010)

Expand

Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter

Explore:

AER - All Issues

AER Forthcoming Articles

Investment and Usage of New Technologies: Evidence from a Shared ATM Network

Article Citation

Ferrari, Stijn, Frank Verboven, and Hans Degryse. 2010. "Investment and Usage of New Technologies: Evidence from a Shared ATM Network." American Economic Review, 100(3): 1046-79.

DOI: 10.1257/aer.100.3.1046

Abstract

The success of new technologies depends on both the firms' investment and consumers' usage decisions. We study this problem in a shared ATM network. Inefficiencies may arise because banks coordinate investment, and consumers may not make proper use of the network. Based on an empirical model of ATM investment and demand, we find that banks substantially underinvested in ATMs, in contrast with earlier findings of strategic overinvestment in the United States. Furthermore, ATM usage was too low, because regulation prohibited fees for cash withdrawals. A direct promotion of investment improves welfare, but fees for branch cash withdrawals would be more effective. (JEL G21, G31, O33)

Article Full-Text Access

Full-text Article

Additional Materials

Download Data Set (154.96 KB) | Online Appendix (73.49 KB)

Authors

Ferrari, Stijn (Catholic U Leuven and National Bank of Belgium)
Verboven, Frank (Catholic U Leuven)
Degryse, Hans (Tilburg U)

JEL Classifications

G21: Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
G31: Capital Budgeting; Fixed Investment and Inventory Studies
O33: Technological Change: Choices and Consequences; Diffusion Processes


American Economic Review


Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

AER - All Issues

AER - Forthcoming Articles

Virtual Field Journals


AEA Member Login:


AEAweb | AEA Journals | Contact Us