Question

According to the FBI Bank Crime​ Statistics, there were nearly​ 4,000 bank robberies in the United States in 2014. The FBI claims that banks have made themselves easy targets by refusing to install clear acrylic​ partitions, called bandit

barriers​,
that separate bank tellers from the public. According to a special agent with the​ FBI,

​"Bandit barriers are a great deterrent.​ We've talked to guys who rob​ banks, and as soon as they see a bandit​ barrier, they go find another​ bank."


​Sources: U.S. Department of​ Justice, Federal Bureau of​ Investigation, "Bank Crime Statistics​ (BCS) Federally Insured Financial​ Institutions, January​ 1, 2014-December​ 31, 2014,"​ www.fbi.gov; and Richard​ Cowen, "FBI: Banks Are to Blame for Rise in​ Robberies,"
NorthJersey.com​,
March​ 10, 2009.

Despite this​ finding, many banks have been reluctant to install these barriers.​ Wouldn't banks have a strong incentive to install bandit barriers to deter​ robberies? Why,​ then, do so many banks not do​ so?

Answer 1

Before a large corporation makes any investment decision, they carry out a cost benefit analysis. In other words, before the banks install clear acrylic partitions, they will decide if the cost of installing those partitions offset the costs of the robberies. The problem with this reasoning is that all banks have insurance against robberies, so if they are robbed the insurance company pays them. So installing the partitions do not represent a lot of benefits for the bank, but they are expensive and represent a large investment. The only way that banks install them is that insurance companies force them to do so.