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Please use this identifier to cite or link to this item: http://hdl.handle.net/2451/14270

Authors: McAndrews, James
Kauffman, Robert J.
Issue Date: Jul-1993
Publisher: Stern School of Business, New York University
Series/Report no.: IS-93-37
Abstract: A unique data set is used to examine the determinants of membership in the Yankee 24 shared Automated Teller Machine (ATM) network. Recent work suggests that the presence of demand side network externalities influences the decision to join a network. A model is constructed in which characteristics of the bank and the market affect the value of the network externality. A hazard function is estimated to gauge the strength of these various influences in determining network membership. The results accord with the theoretical model and show that the size of the existing network and the number of expected locations in the network, proxied by the number of branches in a bank's market, are both strong influences on network adoption that are external to the individual bank.
URI: http://hdl.handle.net/2451/14270
Appears in Collections:IOMS: Information Systems Working Papers

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