Adoption of Technologies With Network Effects: An Empirical Examination of the Adoption of Automated Teller Machines

Saloner, Garth; Shepard, Andrea

doi:10.3386/w4048

Cited by 184 publications

(122 citation statements)

References 2 publications

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“…Moreover, to the best of our knowledge, there exists no empirical study that has examined network effects in the context of a public transit system. Similar to the expansion of a network of automated teller machines examined by Saloner and Shepard (1995) and the adoption of the automated clearing house electronic payment systems examined by Gowrisankaran and Stavins (2004), 1 an expansion of a public transit system benefits not only new users but also existing users.…”

Section: Introductionmentioning

confidence: 99%

How Do Users Value a Network Expansion? Evidence from the Public Transit System in Singapore

Fesselmeyer

Liu

2016

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I EIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. ABSTRACT How Do Users Value a Network Expansion? Evidence from the Public Transit System in SingaporeWe estimate the network externality of a public transit system by examining the effects of its expansion on the housing market. Our results show that a major expansion of Singapore's Mass Rapid Transit (MRT) system increased the price of apartments within 0.5 km of a preexpansion station by 1.6% to 2.1% relative to apartments that were further away from a station. Evaluated at the mean housing price, the expansion increased the value of preconnected apartments by at least S$386 million, which is equivalent to about 8% of the estimated S$5 billion cost of the expansion. JEL Classification:H4, R21, R42, H23

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Section: Introductionmentioning

confidence: 99%

How Do Users Value a Network Expansion? Evidence from the Public Transit System in Singapore

Fesselmeyer

Liu

2016

SSRN Journal

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“…The decision on whether to use cash or cards is conditional on the availability cash delivery channels. As noted by Saloner and Shepard (1995), the lower the geographic dispersion of ATMs (POS) the greater the benefits to cardholders wishing to use cash (cards), who are able to access ATMs (POS) in a wide variety of locations. We also include regional dummies as controls for the geographical location of the cardholders.…”

Section: Ecb Working Paper Series No 1141mentioning

confidence: 99%

How effective are rewards programs in promoting payment card usage? Empirical evidence

Carbó-Valverde

Liñares-Zegarra

2011

Journal of Banking & Finance

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The aim of the conference was to better understand current developments in retail payment markets and to identify possible future trends, by bringing together policy conduct, research activities and market practice. The conference was organised around two major topics: first, the economic and regulatory implications of a more integrated retail payments market and, second, the strands of innovation and modernisation in the retail payments business. To make innovations successful, expectations and requirements of retail payment users have to be taken seriously. The conference has shown that these expectations and requirements are strongly influenced by the growing demand for alternative banking solutions, the increasing international mobility of individuals and companies, a loss of trust in the banking industry and major social trends such as the ageing population in developed countries. There are signs that customers see a need for more innovative payment solutions. Overall, the conference led to valuable findings which will further stimulate our efforts to foster the economic underpinnings of innovation and integration in retail banking and payments. Terms of use: Documents inWe would like to take this opportunity to thank all participants in the conference. In particular, we would like to acknowledge the valuable contributions of all presenters, discussants, session chairs and panellists, whose names can be found in the enclosed conference programme. Their main statements are summarised in the ECB-DNB official conference summary. Twelve papers related to the conference have been accepted for publication in this special series of the ECB Working Papers Series.Behind the scenes, a number of colleagues from the ECB and DNB contributed to both the organisation of the conference and the preparation of this conference report.

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“…We borrow broadly from the general approach of empirical studies of technology adoption in network industries, though none explicitly provides us with a model for how to measure competitive behavior in a standards war. 1 For example, Saloner and Shepard (1995) show the existence of network effects in bank service by showing that banks with more consumers adopt ATM networks earlier. Like our paper, they infer consumer behavior from observing decisions by firms in different locations.…”

Section: Related Literaturementioning

confidence: 99%

Differentiation Across Standards and Adoption Failure in 56K Modems

2004

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Abstract56K modems were introduced under two competing incompatible standards. We show the importance of competition between Internet Service Providers in the adoption process. We show that ISP's were less likely to adopt the technology that more competitors adopted. This result is particularly striking given that industry participants expected coordination on one standard or the other. We speculate about the role of ISP differentiation in preventing the market from achieving standardization until a government organization intervened. JEL: L15, L63, L86

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Adoption of Technologies With Network Effects: An Empirical Examination of the Adoption of Automated Teller Machines

Cited by 184 publications

References 2 publications

How Do Users Value a Network Expansion? Evidence from the Public Transit System in Singapore

How Do Users Value a Network Expansion? Evidence from the Public Transit System in Singapore

How effective are rewards programs in promoting payment card usage? Empirical evidence

Differentiation Across Standards and Adoption Failure in 56K Modems

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