Risk compensation

Risk compensation is a cognitive bias that occurs when individuals adjust their behavior in response to perceived changes in risk. Essentially, as people feel more protected or safer, they tend to take greater risks, potentially offsetting the intended safety benefits.

How it works

This cognitive bias takes root in human psychology and the need for individuals to maintain a certain level of risk in their lives. When safety measures are introduced, people subconsciously assess the reduced risk and may engage in riskier behavior because they feel safeguarded. For example, if a driver feels better protected from injury due to wearing a seatbelt or driving a car with advanced safety features, they may drive faster or more recklessly than they would have otherwise.

Examples

After the introduction of ABS (anti-lock braking systems) in vehicles, some drivers began braking later or following other cars more closely, assuming the technology would prevent an accident.
Cyclists wearing helmets might ride more aggressively, assuming their risk of head injury is minimized.
People using pesticides might apply them more liberally if the label suggests stronger efficacy, inadvertently releasing more chemicals into the environment.

Consequences

The primary consequence of risk compensation is the potential nullification of safety measures. This can lead to an increase in the number of accidents or injuries, as the initial safety benefits are offset by riskier behavior. Economically, it can lead to a strain on health care systems as more resources are required to treat injuries that might otherwise have been prevented.

Counteracting

To mitigate risk compensation, education and awareness campaigns can be implemented to emphasize the limitations of safety measures and encourage safer behavior. Training programs that focus on risk management and registration of inherent risks, regardless of technological or protective measures, can help in promoting a balanced approach to safety.

Critiques

Critiques of the risk compensation theory argue that it overestimates the behavioral changes individuals make in response to safety measures. Some studies show that while riskier behaviors can increase, they do not entirely negate the safety benefits offered by technologies or policies. Moreover, the response to safety interventions can vary significantly among different individuals and contexts.

Fields of Impact

Health & Wellness

Psychology & Social Science

Economics & Finance

Also known as

Risk homeostasis

The Peltzman effect

Relevant Research

The effects of automobile safety regulation.
Peltzman, Sam. (1975)
Journal of Political Economy
Driving speeds, accident involvement, and perceived speed and risk.
Svenson, Ola, et al. (1999)
J. of Safety Research
The theory of risk homeostasis: implications for safety and health.
Wilde, Gerald J.S. (1982)
Risk analysis

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