Atm Pricing and Location Games in the Retail Banking Industry

نویسندگان

  • Reynold Byers
  • Shuya Yin
  • Xiaona Zheng
چکیده

This paper studies a competitive Hotelling-style market with two symmetric banks that decide the pricing and location of their automated teller machines (ATMs). Two different systems are considered in this paper: an unregulated model wherein banks are allowed to set surcharges, and a regulated model in which surcharges are banned. We derive equilibrium outcomes and compare them in the two systems, and find that banks always maintain a certain distance between ATMs, but that distance is larger, indeed maximized, under the regulatory scheme. It has also been shown, surprisingly, that banks would actually always perform better in the regulated model when surcharges are banned, while consumers may be worse off.

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عنوان ژورنال:
  • APJOR

دوره 29  شماره 

صفحات  -

تاریخ انتشار 2012