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Author Question: In the first six months of 2003, branches of Commerce Bank in New York City were robbed 14 times. ... (Read 61 times)

ap345

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on: Mar 15, 2019

In the first six months of 2003, branches of Commerce Bank in New York City were robbed 14 times. The New York City Police recommended steps the bank could take to deter robberies, including the installation of plastic barriers called "bandit barriers." The police were surprised the bank did not take their advice. According to a deputy commissioner of police, "Commerce does very little of what we recommend. They've told our detectives they have no interest in ever putting in the barriers." 



It would seem that Commerce Bank would have a strong incentive to install "bandit barriers" to deter robberies. Why wouldn't they do it?


◦ The banks would rather delay installation of any theft deterring equipment in anticipation of new, lower-cost innovations in the security devices market.
◦ The banks must have weighed the cost of installing bandit barriers against the benefits and decided that they have "no interest in ever putting in the barriers."
◦ The banks are concerned that "bandit barriers" would send the wrong message to customers - that the bank is unsafe.
◦ The banks probably resent any interference from the police department.
Macroeconomics ¦ Hubbard, O'Brien ¦ 6th Edition
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Marked as best answer by ap345 on Mar 15, 2019

joneynes

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Reply #1 on: Mar 15, 2019
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ap345

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Reply 2 on: Mar 15, 2019
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