Cost allocation in a bank ATM network

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 th...

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Bibliographic Details
Published in:Mathematical methods of operations research (Heidelberg, Germany) Germany), 2004-07, Vol.59 (3), p.405-418
Main Authors: Bj rndal, Endre, Hamers, Herbert, Koster, Maurice
Format: Article
Language:English
Subjects:
ATM
Automated teller machine networks
Automated teller machines
Automation
Banking industry
Cost allocation
Cost control
Customers
Fees & charges
Game theory
Mathematical analysis
Operations research
Population
Studies
Theory
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Summary: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. [PUBLICATION ABSTRACT]
ISSN:1432-2994
1432-5217
DOI:10.1007/s001860400351