Methodological issues in testing the hypothesis of risk compensation

Dulisse, Brian

doi:10.1016/s0001-4575(96)00082-6

Cited by 35 publications

(8 citation statements)

References 13 publications

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“…It is similar, but not equal to, risk compensation known from traffic safety as studied by Elvik (2004) and audit risk studies by Vrolix (2006). Risk compensation occurs when individuals adjust their behaviour after the introduction of a safety measure so that some of the extra safety margin is used, not for safety, but for some other purpose, like increasing the riskiness of the driving behaviour as pointed out by Dulisse (1997). Hazard adaptation is different in the sense that it is a culturally selected behaviour shared by a group of people.…”

Section: Hazard Adaptationmentioning

confidence: 99%

Risk management; a behavioural perspective

Wright

2016

Journal of Risk Research

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The risk contributor is usually regarded as responsible for risk mitigation and accident compensation, especially when the risk is due to the operation of a commercial company. The culpability of risk has resulted in several approaches to safety management. Risk management based on quantitative risk analysis (QRA) emerged in the defence and nuclear industry during and after WW2 and is by now introduced in almost every industry with high-risk potential. During this period risk analysis and management as a profession has evolved considerably. Technical failures and operator errors used to be considered as the prime causes of accidents in the early days of risk analysis. Based on investigations of major accidents in the latter half of the last century, poor safety culture and mismanagement were introduced as possible additional causes of major accidents. Human error in decision-making is however rarely quantified and thus not included in QRA. Knowledge from the experimental analysis of behaviour is absent in practical or operational risk management. This paper advocates an approach to risk management where the decision part of the chain of events is explicitly included. The behavioural perspective introduced implies that the application of experimentally based behaviour science and QRA both should be pursued, mainly because quantitative risk analysis is a strong, and probably the best, defence against decision errors. In an operational situation, management must do trade-offs between objectives where safety is but one of several considerations. When the risk is not quantified, safety looses out to other more easily quantified objectives of a company. The fatal decision error that led to the Challenger accident is used as an example.

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Section: Hazard Adaptationmentioning

confidence: 99%

Risk management; a behavioural perspective

Wright

2016

Journal of Risk Research

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“…Researchers have found evidence of risk compensation for various remedies in problem domains that include driving (e.g., Calkins and Zlatoper 2001), cycling (e.g., Rodgers 1996), drinking alcohol (Rogers and Greenfield 1999), and HIV/AIDS (Richens, Imrie, and Copas 2000). However, research in this tradition has been criticized for its use of aggregate methods (Dulisse 1997) and for the lack of evidence for the role of subjective risk perceptions or other psychological processes. In addition, Stetzer and Hoffman (1996) found that less than half of participants exhibited compensating behaviors.…”

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confidence: 99%

Does Marketing Products as Remedies Create “Get Out of Jail Free Cards”?

Bolton¹,

Cohen

Bloom

2006

J CONSUM RES

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Our research investigates the marketing of preventive and curative "remedies" (products and services that offer ways of mitigating risk by decreasing either its likelihood or severity). Examples include debt consolidation loans and smoking cessation aids. Like risk-avoidance messages, advertisements for remedies aim to reduce risk-by advocating the use of the branded product or service promoted by the marketer. In a series of experiments, we demonstrate that remedy messages undermine risk perceptions and increase risky behavioral intentions as consumer problem status rises. Ironically, remedies undermine risk avoidance among those most at risk-a boomerang effect with negative consequences for consumer welfare.

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“…1 1 See, for example, Wilde (1994), Adams, (1995), Viscusi (1992), and Dulisse (1997) for discussion of some of the findings and controversies. …”

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confidence: 99%

Offsetting Behavior and the Benefits of Safety Regulations

Hause

2007

Economic Inquiry

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The net effect of policies to reduce harm to potential victims is sometimes much smaller than the predicted effect because of failure to account for victim offsetting behavior (OB). A simple expected accident loss model is developed where one parameter, the coefficient of diminishing returns, measures quantitatively the marginal offset to the direct policy. The model should be useful in empirical efforts to estimate the OB effect. The article also obtains precise conditions under which OB more than offsets the direct policy effect, shows that stronger risk aversion increases the relative size of OB, and discusses welfare implications of OB. (JEL D18, D61, J28, K32, L51)

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Methodological issues in testing the hypothesis of risk compensation

Cited by 35 publications

References 13 publications

Risk management; a behavioural perspective

Risk management; a behavioural perspective

Does Marketing Products as Remedies Create “Get Out of Jail Free Cards”?

Offsetting Behavior and the Benefits of Safety Regulations

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