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?

Question

a. The banks probably resent any interference from the police department.
b. The banks are concerned that “bandit barriers” would send the wrong message to
customers—that the bank is unsafe.
c. The banks must have weighed the cost of installing bandit barriers against the bene ts and
decided that they have “no interest in ever putting in the barriers.”
d. The banks would rather delay the installation of any theft deterring equipment in anticipation
of new lower-cost innovations in the security devices market.

Answer 1