1 / 7

Lapo Filistrucchi Tilburg University & University of Siena

Discussion of “Coordinated Investment in a Shared ATM network” by Stijn Ferrari, Frank Verboven & Hans Degryse. Lapo Filistrucchi Tilburg University & University of Siena. Economics of Payment Systems Paris, October 2007. Nice paper Well written More advanced then it claims. The paper.

thayward
Download Presentation

Lapo Filistrucchi Tilburg University & University of Siena

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Discussion of“Coordinated Investment in a Shared ATM network” by Stijn Ferrari, Frank Verboven & Hans Degryse Lapo Filistrucchi Tilburg University & University of Siena Economics of Payment Systems Paris, October 2007

  2. Nice paper Well written More advanced then it claims The paper

  3. Not easy to discuss Main: Inelastic per capita cash withdrawals Compatibility Introducing fees for policy simulation Welfare standards Minor: Some typos and incomplete references Q=2.07 comes from? Discussion 1

  4. Assumption that Per capita cash withdrawals (ATM+branches) are inelastic with respect to the number of ATMs despite Increasing relationship between ATM cash withdrawals and number of ATMs so that Consumers substitute away from cash withdrawals at branches to cash withdrawals at ATM Assumption Clearly due to lack of data on total per capita cash withdrawals at local market level Claimed to be justified because simple correlation shows that consumers do not withdraw lower amounts of cash at ATMs when more ATMS are introduced Discussion 2

  5. In practice assumption that: No effect of the number of ATMs on the amount a consumer spends At the aggregate introduction of ATMs lead only to cost savings, no effect on economic activity Realistic? Think to be in a shopping mall in a rainy Saturday afternoon… It would be best to allow for elastic per capita cash withdrawals. If not possible, discuss what is the likely bias that the assumption introduces Surely an effect on the estimates of cost savings Discussion 3

  6. “(In)compatibility” Used in the previous literature But A bit ambiguous… - Technical incompatibility (S.E.P.A) or just due to “on-other fees” and surcharges? - Case of Italy? At least a note… Discussion 4

  7. Policy simulation: - Introduction of uniform fees But - What if only “on-other” fees? Still underinvestment? Claim discussed in the previous literature, but abstracting from variable cost incentives Also - which standard for social optimum? EU DG competition, RBA -> (fair share) consumer surplus First best : consumer surplus ↓ producer surplus↑ government loss↑ !? Discussion 5

More Related