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Tag: <span>RBA</span>

Why people drive across town to save $2

In 2009 the Australian Banks were required to notify customers of the $2 fee to use an ATM belonging to another bank. According to The Age there has been a 40% drop of people using foreign ATM’s which surprised economists who had forecast that there would be a negligible change in consumer behaviour as a result of making a previously hidden fee visible. Apart from the absurdity of expecting economists to know anything about human behaviour, there should be no surprise about the results. To an economist or a bank $2 is a very small amount of money. To a …