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...

This article presents a test of the expense-preference theory of the firm as it applies to the banking industry. We use a model which incorporates explicitly the role of control by the firm's owners in determining the level of firm's inputs chosen by managers and yields implications which allow...