Friday, May 3, 2013

Risk compensation - Wikipedia, the free encyclopedia

Risk compensation - Wikipedia, the free encyclopedia

Risk compensation (also Peltzman effect, risk homeostasis) is an observed effect in ethology whereby people tend to adjust their behavior in response to perceived level of risk, behaving less cautiously where they feel more protected and more cautiously where they feel a higher level of risk. The theory emerged out of road safety research after it was observed that many interventions failed to achieve the expected level of benefits but has since found application in many other fields.

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