In that case, you have misunderstood what my discussion with Kaj was about. He felt that the fact that checks were still in wide use in the United States implied that financial services in America lack modern conveniences.
I pointed out that the fact that an older medium is still accepted does not, in fact, imply that wireless transfer and debit card payments are not available. My argument was not that Europeans should adopt checks because they are superior, but that having check capabilities doesn’t actually mean modern conveniences are lacking, as he implied.
I pointed out that the fact that an older medium is still accepted does not, in fact, imply that wireless transfer and debit card payments are not available. My argument was not that Europeans should adopt checks because they are superior, but that having check capabilities doesn’t actually mean modern conveniences are lacking, as he implied.
Revealed preferences as applied here can only give a stalemate: Americans preferring checks and Europeans never using checks doesn’t tell us which is superior. Adding in the reversal test and noting that the European electronic systems came after rather than simultaneously with checks tells us that in a direct head-to-head comparison, checks lost in a large area of the world, and noting that they don’t offer them at all, apparently, tells us that there is a large burden or cost to supporting checks—in direct opposition to your rhetorical invocation of ‘how can additional options be bad?’. With the burden of supporting checks established, the situation now looks like one of path dependence or local optima traps: the Europeans were able to escape to a more efficient secure useful system of e-banking while the Americans continue to be trapped in a local optima because they cannot profitably shift to a e-banking system while also supporting the costs of the existing checking system.
Americans continue to be trapped in a local optima because they cannot profitably shift to a e-banking system while also supporting the costs of the existing checking system
If this claim was right, there would be lots of locations in which card readers are not available, but checks are accepted. In fact, you seem to be totally wrong about this bizarre claim. In reality, debit cards, credit cards, and charge cards are pretty much always available wherever checks are accepted. I’ve never been to a retailer that accepted checks but not cards.
Adding in the reversal test and noting that the European electronic systems came after rather than simultaneously with checks tells us that in a direct head-to-head comparison, checks lost in a large area of the world
The same argument could be used to claim that Los Angeles’ transportation infrastructure is more advanced than San Francisco’s. (LA used to have a light rail system, but later transitioned entirely to cars. SF kept light rail going, in addition to having cars).
If this claim was right, there would be lots of locations in which card readers are not available, but checks are accepted. In fact, you seem to be totally wrong about this bizarre claim.
It’s a good thing I never said that because it is indeed bizarre. Of course individuals may move closer to the better European optima, but the system as a whole remains in the optima. You may be able to use your debit card in plenty of places, but where’s the rest of the European style system? Can you trivially send money from account to account? Receive deposits in minutes or hours rather than multiple days? etc.
The same argument could be used to claim that Los Angeles’ transportation infrastructure is more advanced than San Francisco’s.
Would pass the reversal test. There are plenty of LAers who would welcome a light rail system, and googling I see there are active light rail projects.
In that case, you have misunderstood what my discussion with Kaj was about. He felt that the fact that checks were still in wide use in the United States implied that financial services in America lack modern conveniences.
I pointed out that the fact that an older medium is still accepted does not, in fact, imply that wireless transfer and debit card payments are not available. My argument was not that Europeans should adopt checks because they are superior, but that having check capabilities doesn’t actually mean modern conveniences are lacking, as he implied.
Revealed preferences as applied here can only give a stalemate: Americans preferring checks and Europeans never using checks doesn’t tell us which is superior. Adding in the reversal test and noting that the European electronic systems came after rather than simultaneously with checks tells us that in a direct head-to-head comparison, checks lost in a large area of the world, and noting that they don’t offer them at all, apparently, tells us that there is a large burden or cost to supporting checks—in direct opposition to your rhetorical invocation of ‘how can additional options be bad?’. With the burden of supporting checks established, the situation now looks like one of path dependence or local optima traps: the Europeans were able to escape to a more efficient secure useful system of e-banking while the Americans continue to be trapped in a local optima because they cannot profitably shift to a e-banking system while also supporting the costs of the existing checking system.
If this claim was right, there would be lots of locations in which card readers are not available, but checks are accepted. In fact, you seem to be totally wrong about this bizarre claim. In reality, debit cards, credit cards, and charge cards are pretty much always available wherever checks are accepted. I’ve never been to a retailer that accepted checks but not cards.
The same argument could be used to claim that Los Angeles’ transportation infrastructure is more advanced than San Francisco’s. (LA used to have a light rail system, but later transitioned entirely to cars. SF kept light rail going, in addition to having cars).
It’s a good thing I never said that because it is indeed bizarre. Of course individuals may move closer to the better European optima, but the system as a whole remains in the optima. You may be able to use your debit card in plenty of places, but where’s the rest of the European style system? Can you trivially send money from account to account? Receive deposits in minutes or hours rather than multiple days? etc.
Would pass the reversal test. There are plenty of LAers who would welcome a light rail system, and googling I see there are active light rail projects.