Motorcycle Helmet Laws: A Case Study of Consumer Protection

Abstract

This study examines the losses to society from federal legislation in 1976 on state motorcycle helmet laws. Two major responses were (1) repeal of helmet laws or failure to enact laws and (2) modification of helmet laws. Losses ranged from $75 million to $244 million for states without helmet laws and from $71 million to $229 million for states with modified helmet laws. Comprehensive state helmet laws would have been cost effective with cost‐benefit ratios ranging from 0.05 to 0.18. The fact that thirty‐one states did not have comprehensive helmet laws in 1981 raises questions concerning the degree that society should intervene on behalf of consumers.

Risk Regulation and Consumer Welfare

“…A study of seat belt use also indicated the failure of consumers to take protective action in spite of the fact that the benefits from such actions were considerably higher than the costs . Other examples of information failures are low purchase levels and inadequate maintenance of smoke detectors for single family homes and the failure to wear motorcycle helmets despite the cost-effectiveness of such safety devices (Thompson and Dardis 1979;Dardis and Lefkowitz 1987).…”