Difference between revisions of "Peltzman Effect"
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== Definition == | == Definition == | ||
The '''Peltzman Effect''' (also ''Risk Compensation'') denotes a behavioral response in which risk management measures or regulation mandating risk reduction may | The '''Peltzman Effect''' (also ''Risk Compensation'') denotes a behavioral response in which risk management measures or regulation mandating risk reduction may | ||
| − | have the | + | have the [[Unintended Consequence]] of encouraging riskier behavior as people feel safer. |
== Background == | == Background == | ||
Latest revision as of 11:47, 27 October 2021
Definition
The Peltzman Effect (also Risk Compensation) denotes a behavioral response in which risk management measures or regulation mandating risk reduction may have the Unintended Consequence of encouraging riskier behavior as people feel safer.
Background
The effect has been highlighted by Peltzman in the context of safety belt regulation[1]
Issues and Challenges
- It is generally difficut to isolate the impact of this behavior from other confounding factors
See Also
References
- ↑ Peltzman, S., 1975, “The Effects of Automobile Safety Regulation,” Journal of Political Economy, 83, 677–725
