| Affiliation: | (1) Institute of Finance and Management Science, Norwegian School of Economics and Business Administration, Norway;(2) Tilburg University, CentER and Department of Econometrics, 90153, 5000 LE Tilburg, The Netherlands;(3) University of Amsterdam, Department of Quantitative Methods, The Netherlands |
| Abstract: | We consider a situation in which a group of banks consider connecting their Automated Teller Machines (ATMs) in a network, so that the banks customers may use ATMs of any bank in the network. The problem studied is that of allocating the total transaction costs arising in the network, among the participating banks. The situation is modeled as a cooperative game with transferable utility. We propose two allocations, and discuss their relation to the core and other well-known solution concepts, as well as to population monotonicity.Endre Bjørndal has enjoyed the hospitality of Tilburg University, and has also received financial support from Telenor AS and the Norwegian School of Economics and Business Administration. |
