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Risk Compensation (Peltzman Effect)

Also Known As: Risk Homeostasis Moral Hazard (related)
Discourse Mechanics ID: the_peltzman_effect

Definition

The tendency to adjust behavior in response to perceived changes in risk, often increasing risk-taking when safety measures are introduced. People maintain a target level of risk rather than enjoying the full benefit of safety improvements.

Examples

Drivers with ABS brakes drive more aggressively, partially offsetting the safety benefit. Skydivers with better equipment attempt riskier maneuvers.

After a city installs bright new streetlights and traffic cameras in a notoriously dangerous intersection, pedestrians begin crossing mid-block and ignoring walk signals, assuming the infrastructure makes them safe. Accident rates barely improve as a result.

Following the introduction of mandatory helmet laws for cyclists, studies find that some riders take faster routes through heavy traffic and attempt more technical maneuvers, reasoning that the helmet protects them — partially canceling out the safety gains the law was designed to produce.

Verification Steps
Verification Steps
Binary yes/no questions that an AI must answer to detect a reasoning pattern in a text.
Each of the 452 aspects has verification steps — simple yes/no questions designed to systematically detect whether a pattern appears in a text. For ad hominem: "Does the argument attack a person rather than their claim?" For false dichotomy: "Are only two options presented when more exist?" This ensures consistent, reproducible analysis.

Binary (yes/no) questions an LLM must answer to identify this aspect:

  1. 1

    Has a safety measure or risk reduction been introduced?

    Type: binary
  2. 2

    Do people respond to the increased safety by taking more risks?

    Type: binary
  3. 3

    Does the increased risk-taking partially or fully offset the safety benefit?

    Type: binary
Deep Dive
The expandable detail section on each aspect page with examples, psychology, and counter-strategies.
The Deep Dive section provides in-depth information about each aspect: a real-world example showing the pattern in action, an explanation of why it works psychologically, practical advice on how to counter it, alternative names, and links to related aspects.

Hierarchical Context