Home » Bias of the week » Risk compensation
In 1975, economist Sam Peltzman analyzed the effects of automobile safety regulations on driver behavior
Safety measures like seat belts reduced fatalities, but they also encouraged riskier driving behaviors, such as speeding.
This “compensating behavior” diminished the safety benefits, highlighting the complex relationship between between regulations and driver actions.
The Peltzman Effect suggests that when people perceive a lower risk, they tend to engage in riskier behavior
See the full study here :
Peltzman, S. (1975). The effects of automobile safety regulation. Journal of Political Economy, 83(4), 677–725. https://doi.org/10.1086/260352
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