strategic incompatibility in atm markets christopher r knittel and victor stango abstract we test whether firms use strategically using data from high fees degrade the value of competitors deposit accounts can principle serve as a mechanism for siphoning depositors away or creating account di erentiation our empirical framework empirically distinguish surcharging motivated by this concern that simply maximizes profit considered stand alone operation results are consistent with such behavior large banks but not small e ect seems to operate through higher rather than increased base department economics university california davis ca nber email crknittel ucdavis edu tuck school business dartmouth college hanover nh 03755 thanks seminar participants at 2005 iioc conference doj 2006 winter io helpful comments carrie jankowski kaushik murali provided excellent research assistance 1 2 surcharges may put more accurately do own many atms disadvantage induce
